LOUISIANA STUDENT
FINANCIAL ASSISTANCE COMMISSION
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LPM NO.: | L2002-9 | Effective Date: | As Indicated |
Pub. Date: | September 3 , 2002 | Distribution: | Lenders and Schools |
Topic: | 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 summary informs 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.
NSLDS
Enrollment Reporting
The Department of
Education has updated the National Student Loan Data System (NSLDS) Enrollment
Reporting process effective January 2, 2002. The updates to the NSLDS Enrollment
Reporting process enhance both the batch process of enrollment records and the
NSLDS/FAP Web site for financial aid professionals. The Department of Education
also renamed the former SSCR Users Guide the NSLDS Enrollment Reporting
Guide. The Common Manual has been updated to replace references to
the Student Status Confirmation Report (SSCR) with these new enrollment reporting
requirements and applicable terminology. In addition, the glossary has been
revised to delete the definitions of "Enrollment Update Report" and "Loan Transaction
Statement" since these terms no longer appear in the manual, and to add a definition
of "Enrollment Reporting" and an entry of the term "Student Status Confirmation
Report" (SSCR) with a cross-reference to the definition "Enrollment Reporting".
Affected Sections: | 4.4, 4.8, 4.8.A, 4.8.B, 4.8.C, 4.10, 7.3, 7.3.A, appendix D, appendix G |
Effective Date: | January 2, 2002 |
Basis: | §682.401(b)(20); DCL G-00-329/L-00-223; NSLDS Enrollment Reporting Guide published April 1, 2002; NSLDS Newsletter, Number 2, January 2002. |
Policy Information: | 611/Batch 95 |
Guarantor Comments: | None. |
Waiver
of the Grace Period
The manual's example
of a borrower who waived his or her grace period and then reenrolled has been
updated to reflect a lender's requirement to grant an in-school deferment based
on the receipt of enrollment information that supports the borrower's eligibility
for the deferment, even without the borrower's request. This change aligns the
example with the policies in subsections 7.9.A, 7.9.B, and 7.10.A.
Affected Sections: | 7.2 |
Effective Date: | Retroactive to in-school deferments granted on or after October 1, 1998, on loans that had the grace period waived. |
Basis: | HEA 428(b)(1)(Y); §682.210(c)(1). |
Policy Information: | 612/Batch 95 |
Guarantor Comments: | None. |
Institutional Student
Information Record
A glossary definition
for "Institutional Student Information Record (ISIR)" has been added to appendix
G. An ISIR is the electronic output record provided to the school by the Department's
Central Processing System that includes information provided by the student
on the Free Application for Federal Student Aid (FAFSA) and that includes the
student's expected family contribution (EFC) and the results of federal database
matches. The paper version of this document that is sent to the student is called
a Student Aid Report (SAR).
Affected Sections: | appendix G |
Effective Date: | Retroactive to the implementation of the Common Manual. |
Basis: | §668.2(b); §690.2(c) |
Policy Information: | 612/Batch 95 |
Guarantor Comments: | None. |
Notifying
the Guarantor of a Guarantee Reinstatement
The Common Manual
has been revised to reflect existing National Student Loan Data System (NSLDS)
requirements to report a loan's loss of guarantee and the reinstatement of that
guarantee. In addition, lenders are required to ensure that, if the guarantor
does not utilize the lender's NSLDS reporting data to update it records, the
guarantor is notified of the loan's loss of guarantee and the reinstatement
of that guarantee at the time each of those events occur or are identified.
Finally, the manual has been revised to require the lender to include the curing
instrument or a legible copy of the curing instrument in any claim filed after
the guarantee reinstatement. Requirements that the lender provide other cure
documentation such as a request for reinstatement of the guarantee have been
removed.
Affected Sections: | 8.3.B, CCI8.3.B, 8.8.F, CCI8.8.F |
Effective Date: | Guarantee reinstatements completed by the lender on or after January 1, 2003. |
Basis: | None. |
Policy Information: | 573/Batch 93 |
Guarantor Comments: | None. |
Definition
of Curing Instrument
The Common Manual is revised to include
a definition of "curing instrument" in the glossary. A curing instrument is
defined as documentation the lender must obtain and retain to substantiate a
cure. Examples of a curing instrument include, but are not limited to, a signed
repayment agreement, evidence of one full payment received from or on behalf
of the borrower, or documentation of the activities performed in an Intensive
Collection Activities (ICA) cure.
Affected Sections: | appendix G |
Effective Date: | Retroactive to the implementation of the Common Manual. |
Basis: | None. |
Policy Information: | 604/Batch 93 |
Guarantor Comments: | None. |
Default
Aversion Assistance
Specific requirements
regarding a guarantor's default aversion assistance activities have been removed
from subsections 8.1.J and CCI8.1.J.
Federal regulations no longer specify the content of the guarantor's default
aversion assistance activities. Thus, guarantors may be performing multiple
activities with varied content based on their own analysis of their portfolio
requirements.
Affected Sections: | 8.1.J, CCI8.1.J. |
Effective Date: | July 1, 2000. |
Basis: | §682.404(a)(2)(ii) |
Policy Information: | 605/Batch 93 |
Guarantor Comments: | None. |
Due Diligence
Activities
Subsections 8.1.D
and CCI8.1.D
of the Common Manual have been revised to remove redundant policy guidance
related to final demand letters and the 45-day gap. This guidance is being retained
solely under the more appropriate subheadings "241 days or more delinquent,"
"301 days or more delinquent," and "Other Requirements," while duplicate guidance
found under the subheadings "16-180 days delinquent" and "16-240 days delinquent"
has been removed.
Affected Sections: | 8.1.D, CCI8.1.D |
Effective Date: | Retroactive to loans on which the first day of delinquency on the oldest outstanding due date is on or after July 1, 2000. |
Basis: | None. |
Policy Information: | 606/Batch 93 |
Guarantor Comments: | None. |
Glossary Updated
to Delete Congressional Methodology
The Common Manual has been revised
to delete the definition of "Congressional Methodology" from appendix G, as
it is no longer used. The reference to Congressional Methodology within the
definition of "Federal Need Analysis Methodology" has also been deleted.
Affected Sections: | appendix G |
Effective Date: | Retroactive to the implementation of the Common Manual. |
Basis: | None. |
Policy Information: | Reference 580 |
Guarantor Comments: | None. |