LOUISIANA STUDENT
FINANCIAL ASSISTANCE COMMISSION
|
|||
| LPM NO.: | L2002-11 | Effective Date: | As Indicated |
| Pub. Date: | December 4 , 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. These changes will also be incorporated into the November 2002 Integrated Common Manual. The Integrated Common Manual is available on the NCHELP website at www.NCHELP.ORG in the e-library. However, all of the following changes are effective before the next paper manual update is scheduled to be delivered.
Borrower
Eligibility for Closed School and False Certification Loan Discharges
The Common Manual
has been updated to clarify that a borrower may be eligible for closed school
or false certification discharge of the entire loan if the borrower (or the
student for whom a parent obtained a PLUS loan) received any part of the proceeds
of a FFELP loan on or after January 1, 1986.
| Affected Sections: | 8.2.G, 8.2.H, CCI8.2.G, CCI8.2.H |
| Effective Date: | Retroactive to the implementation of the Common Manual. |
| Basis: | §682.402(d)(3)(ii)(A) and §682.402(e)(3)(ii)(A) as updated in the April 29, 1994, Federal Register. |
| Policy Information: | 626/Batch 98 |
| Guarantor Comments: | None. |
PLUS Loan Limits
Common Manual
policy has been revised to state that only Stafford loans are subject to annual
and aggregate loan limits.
| Affected Sections: | 5.8.A |
| Effective Date: | Retroactive to the implementation of the Common Manual. |
| Basis: | None. |
| Policy Information: | 627/Batch 98 |
| Guarantor Comments: | None. |
Third-Party
Servicer Audits
The Common
Manual has been revised to remove outdated information in subsection 3.8.B
that addressed the period to be covered in an initial audit by a lender servicer.
This dated information has been moved to appendix H.
| Affected Sections: | 3.8.B |
| Effective Date: | Third-party servicer audits submitted on or after June 1, 1997. |
| Basis: | None. |
| Policy Information: | 628/Batch 98 |
| Guarantor Comments: | None. |
Exemptions from the
Consequences of High Official Cohort Default Rates
The Common
Manual has been revised to remove redundant information (Common Manual
subsection 10.4.B, page 11, column 1, paragraphs 2 and 3) related to eligibility
criteria and procedures for schools that qualify for relief from the consequences
of high official cohort default rates. This information is being retained under
the more appropriate subheading "Exemptions from Consequences of High Official
Cohort Default Rates," in section 10.5.
| Affected Sections: | 10.4.B |
| Effective Date: | Cohort default rates calculated on or after July 1, 2001 |
| Basis: | §668.198 |
| Policy Information: | 629/Batch 98 |
| Guarantor Comments: | None. |
Three Year Rule
The Common
Manual has been updated by deleting the term "Three Year Rule" and its definition
from appendix G because the term is not used within the text of the manual.
| Affected Sections: | appendix G |
| Effective Date: | Retroactive to the implementation of the Common Manual. |
| Basis: | None. |
| Policy Information: | 630/Batch 98 |
| Guarantor Comments: | None. |