LOUISIANA STUDENT
FINANCIAL ASSISTANCE COMMISSION
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| LPM NO.: | L2005-7 | Effective Date: | As Indicated |
| Pub. Date: | Nov. 30, 2005 | Distribution: | Lenders; College, University and LAICU Financial Aid and Business Offices and Registrars; Tech School Personnel and Campus Deans; and Proprietary 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 nation’s guarantors provide the following summaries to inform schools, lenders and servicers of the latest Common Manual policy changes. These changes will appear in the manual’s next annual update in July 2006. These changes will also be incorporated into the October 2005 Integrated Common Manual. The Integrated Common Manual is available on several guarantor Web sites, and it is also available on NCHELP’s Web site at www.NCHELP.org in the e-library. Please carefully note the effective date of each policy change.
Please note that the Bulletin Language for Policy Proposal #831 Bankruptcy Filed Before First Disbursement Date has been moved to considered by the Policy Committee.
Cessation
of Collection Activity
The Common Manual has been updated to remove language stating
that a borrower is ineligible for a FFELP loan if he or she has had a prior
FFELP loan partially or totally written off by the lender. A borrower whose
prior FFELP loan has been partially or totally written off by a lender is not
required to reaffirm the written-off loan as a condition of eligibility for
a new FFELP loan.
| Affected Sections: | 5.3 Prior Loan Written Off |
| Effective Date: | Retroactive to the implementation of the Common Manual |
| Basis: | §682.201(a)(4); DCL 96-L-186, Q & A #4, #5, #7, and #8 |
| Policy Information: | 832/Batch 123 |
| Guarantor Comments: | None. |
Eligibility for Additional Unsubsidized Stafford Loan Funds
The Common Manual has been revised to align information in this
subsection with longstanding federal regulations. Revised language states that
in order for a school to certify additional unsubsidized Stafford loan funds
for a dependent student, the student’s parent must be unable to obtain
PLUS loan funds and the student’s family must be otherwise unable to meet
the expected family contribution (EFC).
| Affected Sections: | 6.15.D Additional Unsubsidized Stafford Loan Certification |
| Effective Date: | Retroactive to the implementation of the Common Manual. |
| Basis: | §682.201(a)(3) |
| Policy Information: | 833/Batch 1223 |
| Guarantor Comments: | None. |
Borrower Eligibility
The Common Manual is revised to remove language indicating that
a defaulted loan may be discharged because the parent borrower is unable to
complete a program of study due to the school's closing. A PLUS loan may be
discharged if the student for whom the parent borrowed a PLUS loan is unable
to complete a program of study due to the school's closing.
| Affected Sections: | 5.2.E
Prior Default |
| Effective Date: | Retroactive to the implementation of the Common Manual. |
| Basis: | None |
| Policy Information: | 834/Batch 123 |
| Guarantor Comments: | None. |