Common Manual Update

To assure that your Common Manual remains current, please record this document on your LPM/LPB index, and retain it in Appendix E of your manual.

The following summaries inform schools, lenders, and servicers of the latest Common Manual policy changes. These changes will appear in the manual's next annual update in 2002. However, these changes are effective before the next update is scheduled to be delivered.

U.S. Department of Education Publications

The Common Manual has been updated to remove references to the Draft Cohort Default Rate Guide and the Official Cohort Default Rate Guide and replace them with a reference to the Cohort Default Rate Guide, which replaced both of those publications. These references were previously updated in chapter 10, which provides a more detailed outline of the cohort default rate process.

Cost of Attendance

The Common Manual has been revised to clarify that a student's financial aid package, including loans, must not exceed the student's cost of attendance, as opposed to the student's need.

Satisfactory Academic Progress (SAP)

The Common Manual has been updated to clarify that the 150% rule for program completion is based on the published program length, not the completion time normally allotted for the program. In addition, this requirement applies only to undergraduate programs.

Borrower Authorization for Release of EFT/Master Check Disbursements

The Common Manual has been updated to eliminate language referencing Stafford loans made using a common loan application and promissory note because all Stafford loans are now made using a Master Promissory Note (MPN). In addition, the exception for students enrolled in study-abroad programs or eligible foreign schools to provide a power of attorney for an individual not affiliated with the school to sign the authorization for release of electronic funds transfer (EFT) or master check disbursements has been eliminated because this authorization is included on the MPN and does not pertain to PLUS loans.

SSCR Responsibility

The Common Manual has been updated to reflect that the responsibility of the distribution and collection of Student Status Confirmation Reports (SSCRs) no longer lies with the guarantor once the school receives a letter from the Department confirming the school's successful SSCR testing with the National Student Loan Data System (NSLDS). Revised policy also states that the Department, via the NSLDS, is responsible for ensuring that SSCR information is distributed to the appropriate guarantor and, in some cases, lenders.

Timely Filing Penalties for Death Claims

The Common Manual has been revised to more accurately reflect that a death claim that is not filed within 60 days of receiving an original or certified copy of the death certificate will be subject to an interest penalty, and the lender will be required to repay all interest benefits and special allowance payments for amounts received or otherwise payable after the expiration of the 60-day filing deadline. Previously, the manual stated that a death claim purchased after the 60th day would be subject to an interest penalty. In addition, a reference has been added to refer readers to subsections 8.8.E. and ^CCI8.2.B., Penalties for Timely Claim Filing Violations.

NSLDS Data Included in Program Reviews

The Common Manual has been updated to add National Student Loan Data System (NSLDS) rosters, reporting, and procedures to the list of items that a guarantor may include in a school program review, and NSLDS Lender Manifest, error reports, and procedures to the list of items a guarantor may include in a lender or servicer program review. It also adds improper NSLDS reporting and procedures to the list of common program review findings.