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Common Manual Update |
LOUISIANA
STUDENT FINANCIAL ASSISTANCE COMMISSION
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| LPM NO.: | L2000-9 | Effective Date: | As Indicated |
| Pub. Date: | November 9 , 2000 | 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.
LOSFA provides 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 2001. However, these
changes are effective before the next update is scheduled to be delivered.
Use of the MPN Multi-Year
Feature
The Common Manual has been revised to exclude institutions located outside
of the United States from using the multi-year feature of the Master Promissory
Note (MPN). Also, if an institution has been deemed eligible by the Department
to use the multi-year feature, the feature is applicable to all of the institution's
students, even those who are not enrolled in four-year, graduate, or professional
programs.
| Affected Sections: | 2.2.A. |
| Effective Date: | Loans certified by the school on or
after March 13, 2000. |
| Basis: | DCL GEN 00-03, March 13, 2000. |
| Policy Information: |
Reference 462 |
| Guarantor Comments: | None |
Late Disbursement by a Lender
Common Manual policy has been revised to clarify one of the conditions
for a lender's late disbursement of loan proceeds. The lender must ensure that
the school certified the borrower's loan eligibility before the end of the loan
period or the date on which the student ceased to be enrolled at least half
time, whichever is earlier. As always, the school must have determined that
the loan funds will be used to pay educational costs incurred for the period
during which the student was enrolled and eligible.
| Affected Sections: | 6.2.H. |
| Effective Date: | Late disbursements made on or after
July 1, 2000, unless implemented earlier by the lender. |
| Basis: | §682.207(f)(1)(i)
as updated by the Federal Register dated November 1, 1999 - Final Rule;
The 1999-2000 Federal Student Financial Aid Handbook, FFEL Program Reference:
Payment to the Borrower - Late Disbursement. |
| Policy Information: | Reference 463 |
| Guarantor Comments: | None |
The Common Manual has been revised to align the deferment information
with the common deferment forms that were approved by the Department of Education
in July 1999. Deferment information has been updated to reflect the use of the
Master Promissory Note. The changes include updates to form titles and abbreviations,
and revisions to indications regarding the applicability of certain forms to
certain borrowers or students. Following are highlights of the changes:
Form Changes
• In-School Deferment Request (SCH)
All student borrowers applying for in-school deferment now use a single deferment form.
Parent borrowers seeking PLUS loan deferment based on the dependent student's
school enrollment no longer use this form, but use the new PLUS Borrower with
Dependent Student Deferment Request form instead.
• Education Related Deferment Request (EDU)
Parent borrowers seeking PLUS loan deferment based on the dependent student's
rehabilitation training no longer use this form, but use the new PLUS Borrower
with Dependent Student Deferment Request form instead.
• Temporary Total Disability Deferment Request (TDIS)
This form is used only for temporary disabilities. The option for the physician to
certify a borrower's permanent disability has been deleted. Borrowers with a
permanent disability now use the Total and Permanent Disability Cancellation
Request instead.
• Public Service Deferment Request (PUB)
The only changes to this form are that the deferment type formerly called
"Military" is now called "Armed Forces" and that deferment candidates
formerly referred to as "Domestic" program volunteers are now referred to
as "ACTION" program volunteers.
• Parental Leave/Working Mother Deferment Request (PLWM)
This form previously was called the Family Deferment Request (FAM).
• PLUS Borrower with Dependent Student (PLUS)
This new form allows a PLUS borrower with an eligible dependent student
to request deferments that were previously requested on the In-School
and Education Related deferment forms.
A PLUS borrower is eligible for deferment while the student for whom he
or she borrowed a PLUS loan is dependent and meets one of the
following criteria:
• Enrolled full time at an eligible school.
• Enrolled at least half time at an eligible school.
• Engaged full time in a rehabilitation training program.
Discontinued and Renamed Deferment Forms
The following forms have been discontinued and replaced:
• The Family Deferment Request (FAM) is now called the Parental
Leave/Working Mother Deferment Request (PLWM).
• The Education Related Deferment Request with the "New EDU"
designation has been discontinued. Graduate fellowship and
rehabilitation training deferments formerly requested on this form
are now requested on the Education Related Deferment Request
with the "EDU" designation instead. In-school deferments are
now requested on the In-School Deferment Request (SCH) form
instead.
• The Economic Hardship Deferment Request with the "New HRD"
designation has been discontinued. All borrowers now use the
Economic Hardship Deferment Request with the "HRD" designation.
• The Temporary and Permanent Total Disability Certification (DIS)
has been replaced with the Temporary Total Disability Deferment
Request (TDIS) and the Total and Permanent Cancellation Request forms.
| Affected Sections: | 7.9.A., 7.9.B., 7.10.A., 7.10.C., 7.10.D., 7.10.F., 7.10.L., 7.10.O., 7.10.P. |
| Effective Date: | Deferment forms distributed to borrowers
no later than November 1, 1999. |
| Basis: | |
| Policy Information: | Reference 464 and 465 |
| Guarantor Comments: | None |
The Common Manual has been revised to clarify that when a loan is paid
in full by the borrower, the lender must either return the original or a true
and exact copy of the promissory note to the borrower or notify the borrower
that the loan is paid in full.
| Affected Sections: | 7.13 |
| Effective Date: | Borrower notification by the lender
of loans paid in full by the borrower on or after July 1, 2000. |
| Basis: | §682.414(a)(5)(ii). |
| Policy Information: | Reference 466 |
| Guarantor Comments: | None |
Revised Common Manual policy clarifies that if the lender fails to file
a default aversion request by the 330th day of delinquency, the lender will
not be entitled to interest, interest benefits, and special allowance for the
most recent 270 days preceding the date on which the loan defaults.
| Affected Sections: | 8.1.J., CCI8.1.J. |
| Effective Date: | |
| Basis: | |
| Policy Information: | Reference 467 |
| Guarantor Comments: | None |
Guarantors have removed a reference to Nursing Student Loans (NSL) that may
have led some to misinterpret when such loans were eligible for consolidation
in the FFELP program. NSL loans first became eligible for FFELP consolidation
on October 20, 1994. However, a passing reference to NSL loans in the first
paragraph of section 9.6—a paragraph that addresses Consolidation loans made
from applications received by the lender in 1993—may have incorrectly implied
that NSL loans could be included in pre-1994 Consolidation loans. To avoid any
further confusion, this reference to NSL loans has been deleted.
| Affected Sections: | |
| Effective Date: | |
| Basis: | |
| Policy Information: | Reference 468 |
| Guarantor Comments: | None |
Lenders will find a comprehensive list of ED Form 799 codes and valid code combinations
in the next update to the Common Manual. Guarantors have decided to add
a two-page chart developed by the NCHELP Regulations Committee to the manual.
The chart currently is available on the NCHELP Web site at: http://www.nchelp.org/public/799chart2000.pdf.
| Affected Sections: | |
| Effective Date: | |
| Basis: | HEA
438; Self-Instructional Workbook for the ED Form 799. |
| Policy Information: | Reference 469 |
| Guarantor Comments: | None |