LOUISIANA STUDENT
FINANCIAL ASSISTANCE COMMISSION
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LPM NO.: | L2003-4 | Effective Date: | As Indicated |
Pub. Date: | March 17 , 2003 | 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 2003. These changes will also be incorporated into the February 2003 Integrated Common Manual, 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.
Economic
Hardship Deferment
The Common Manual
has been revised to coordinate the policy language related to the determination
of the borrower's Title IV debt burden with federal regulations and with the
requirements of the Economic Hardship Deferment Request form issued in Dear
Colleague Letter GEN 02-08. The revised policy specifies that the lender must
include defaulted loans when determining the borrower's Title IV debt burden
for the purposes of an economic hardship deferment if the borrower provides
documentation that he or she has made repayment arrangements satisfactory to
the holder of the defaulted loans.
Affected Sections: | 7.10.P |
Effective Date: | Retroactive to the implementation of the Common Manual. |
Basis: | 34 CFR 682.210(s); Economic Hardship Deferment Request form, issued in Dear Colleague Letter GEN-02-08. |
Policy Information: | 631/Batch 101 |
Guarantor Comments: | None. |
Next
Due Dates for PLUS and SLS Loans
When establishing
the next payment due date on a PLUS or SLS loan following a period of forbearance,
deferment, or post-deferment grace, the lender may provide the borrower a due
date that is no later than 60 days after the end of the forbearance, deferment,
or post-deferment grace period. The due date may be later than 60 days if the
borrower makes a prepayment during the period that advances the due date. Previous
policy required the lender to establish the next payment due date no later than
45 days after the end of the applicable period.
Affected Sections: | 7.4.B, 7.4.C |
Effective Date: | Next payment due dates for PLUS and SLS loans established by the lender on or after November 1, 2002. |
Basis: | None. |
Policy Information: | 641/Batch 101 |
Guarantor Comments: | None. |
First
and Next Payment Due Dates for Stafford Loans
The Common
Manual has been revised to reflect revised regulations regarding Stafford
loan first payment due dates and next payment due dates following periods of
forbearance, deferment, and post-deferment grace. Lenders are required to establish
a Stafford borrower's first payment due date no later than 60 days, not 45 days
as previously required, after the repayment start date. Lenders also are required
to establish the due date following a period of forbearance, deferment, or post-deferment
grace no later than 60 days, not 45 days as previously required, after the end
of that period.
Previously, lenders were required to establish the first payment due date on a Stafford loan no later than 45 days after the repayment start date and the next payment due date no later than 45 days after a period of forbearance, deferment or post-deferment grace.
Affected Sections: | 7.4.B, 7.9.G, 7.10.B, 7.11.K |
Effective Date: | First payment due dates and next payment due dates established by the lender on or after November 1, 2002. |
Basis: | 34 CFR 682.209(a)(3)(ii). |
Policy Information: | 642/Batch 101 |
Guarantor Comments: | None. |
Claim
Purchase and Claim Returns
The Common
Manual has been revised to reflect changes in federal regulations regarding
the time frame in which the guarantor must purchase an approved total and permanent
disability claim or return the claim. Guarantors are required to purchase an
approved total and permanent disability claim or return the claim not later
than 90 days after the claim was received by the guarantor. Previously, guarantors
were required to purchase an approved total and permanent disability claim or
return the claim not later than 45 days after receiving the claim from the lender.
Affected Sections: | 8.4, CCI8.4, 8.6, CCI8.6 |
Effective Date: | Total and permanent disability claims received by the guarantor on or after July 1, 2003. |
Basis: | 34 CFR 682.402(h). |
Policy Information: | 644/Batch 101 |
Guarantor Comments: | None. |
Claim
Purchase Time Frames
The Common
Manual has been updated to clarify that for an unpaid refund discharge request
for a closed school, the guarantor is required to purchase an approved discharge
request or return the request to the lender within 45 days. For an unpaid refund
discharge request for an open school, the guarantor may take up to 120 days
to resolve the unpaid refund with the school. The guarantor is required to purchase
an approved discharge request or return it to the lender within 45 days from
the date the eligibility determination is made. A cross reference to subsection
8.2.I has been added.
Affected Sections: | 8.6, CCI8.6 |
Effective Date: | Unpaid refund discharges granted on or after July 1, 2000, for loans disbursed, in whole or in part, on or after January 1, 1986. |
Basis: | 34 CFR 682.402(l)(2)(ii); 34 CFR 682.402(n)(1). |
Policy Information: | 644/Batch 101 |
Guarantor Comments: | None. |
Organizational
Changes to Text
The Common
Manual has been revised to eliminate information related to guarantor processing.
The Common Manual was established to provide information regarding guarantor
policies related to school and lender requirements and does not provide information
related to guarantor services, processing, or those policies related to the
guarantors' administrative issues. The manual has also been revised to combine
related information from two subsections into one.
Affected Sections: | 6.1.B, 6.1.G |
Effective Date: | July 1, 2003. |
Basis: | None. |
Policy Information: | 645/Batch 101 |
Guarantor Comments: | None. |
Reissuing
a Loan Disbursement
The Common
Manual has been revised to provide an explanation of the circumstances under
which a lender may reissue a disbursement. A lender may reissue a loan disbursement
if the original disbursement was made according to the school's disbursement
schedule, the loan was canceled or not consummated, and the school subsequently
determines that the student should have received the disbursement.
Affected Sections: | 6.2.G |
Effective Date: | July 1, 2003. |
Basis: | None. |
Policy Information: | 646/Batch 101 |
Guarantor Comments: | None. |