FINANCIAL ASSISTANCE COMMISSION
|LPM NO.:||L2002-10||Effective Date:||As Indicated|
|Pub. Date:||October 2 , 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.
of an Original Promissory Note to a School
The Common Manual has been updated to state that the school may request that the lender assign the original or a true and exact copy of the promissory note to the school in those cases where a school repays the entire loan amount for an ineligible borrower. This change recognizes the fact that the lender may have a true and exact copy of the promissory note rather than the original promissory note. Revised policy also refers the reader to loan record retention requirements in subsection 3.4.A for any loan assigned to a school and any remaining loans held by the lender that were originated under the same Master Promissory Note (MPN).
|Affected Sections:||6.3.G Return of Loan Proceeds|
|Effective Date:||For all loans made using a Master Promissory Note (MPN) for any period of enrollment beginning on or after July 1, 2000, and for any loan certified on or after July 1, 2000, regardless of the loan period begin date.|
|Basis:||HEA 432(m)(1)(C); §682.102(a)-as updated in the Federal Register dated November 1, 1999.|
|Policy Information:||615/Batch 96|
Aid Transcripts for Transfer Students
The Common Manual has been revised to reflect that schools are required to respond to a request for a paper financial aid transcript (FAT) to report assistance received through the Department of Health and Human Services (HHS). Even though schools have always been required to provide FATs for HHS assistance, the manual did not reflect this requirement.
|Affected Sections:||5.2.E Financial Aid History and Prior Overpayment, Default, Discharge, or Write-Off|
regarding the Transfer Monitoring Process are effective for Stafford and
PLUS loan funds delivered by the school on or after July 1, 2001.
Provisions requiring schools to continue providing paper financial aid transcripts for student aid programs administered by the Department of Health and Human Services (HHS) are effective retroactive to the implementation of the Common Manual.
|Basis:||DPL GEN-01-09, published July 2001.|
|Policy Information:||617/Batch 96|
Application and Promissory Note
The Common Manual has been updated to delete references to the common Stafford application and promissory note, as this form is obsolete.
Guarantee of the Loan
6.1.H Adjusting the Guaranteed Loan Amount
|Effective Date:||Stafford loans certified by the school for any period of enrollment beginning on or after July 1, 2000; and for any loan certified on or after July 1, 2000, regardless of the loan period begin date.|
|Basis:||HEA 432(m)(1)(c); §682.102(a)-as updated in the Federal Register dated November 1, 1999.|
|Policy Information:||618/Batch 96|