Oklahoma Guaranteed Student Loan Program
Common Manual Update - 100
Unified Student
Loan Policy
(Click here to download PDF version.)
The Common Manual Governing Board recently approved changes that modify policies in the Common Manual.
The items outlined in this publication provide you with interim updates regarding the policy changes that will be incorporated in the Common Manual when the next annual update is published.
If you have questions regarding information contained in this bulletin, please contact the OGSLP Policy Implementation, Training and Communications Division at (405) 234-4440 or 1-800-247-0420.
Chapter 8: Loan Delivery
Borrower Authorization to Release Loan Funds Received via EFT or Master Check
The Common Manual
has been updated to remove language that implies that when a borrower signs the
Master Promissory Note (MPN), he or she is giving the lender permission to disburse
Affected Sections: 8.3 Required
Authorizations
8.7.H
Delivery Methods
Effective Date: Information
applicable to
Basis: None.
Chapter 11: Deferment and Forbearance
Deferment Eligibility (Note: This bulletin language was retracted in CM-105 / Aug. 14, 2006.)
The Common Manual has been revised to more clearly state that if all of the loans that qualified the borrower as a "new borrower" in one category are paid in full through consolidation, the borrower changes to the “new borrower” category applicable to the date on which the Consolidation loan is made. The borrower is eligible for deferments in that category on the Consolidation loan and all subsequent loans. In addition, revised policy removes an incorrect regulatory citation and replaces it with a correct citation.
Affected Sections: 11.1.A General Deferment Eligibility Criteria
Effective Date: Retroactive to the implementation of the Common Manual.
Guarantor Comments: None.
Chapter 13: Claim Filing, Discharge, and Forgiveness
Total and Permanent Disability Loan Discharge Determination with New Loan
The Common Manual has been revised to state that if a borrower receives a new loan under the Perkins, FFEL, or Direct Loan Programs (with the exception of a Consolidation loan that does not include any loans that are in a conditional discharge status) within 3 years of the date the borrower became unable to work and earn money, the borrower is not eligible for discharge on that loan or any loan made prior to that date. This 3-year period, i.e., the conditional discharge period, begins on the date the borrower became unable to work and earn money, as certified by the physician. The lender must review its records for any new loan(s) made to the borrower on or after the date the borrower became totally and permanently disabled. If the lender’s records indicate (or the lender is otherwise aware) that a new loan(s) was made during the 3-year conditional discharge period, the lender must deny the discharge and inform the borrower.
Affected Sections: 13.8.E Total and Permanent Disability
Effective Date: Total and permanent disability loan discharge applications received by the lender on or after July 1, 2006, unless implemented earlier by the guarantor.
Basis: §682.402(c)(1)(ii)(B).
Teacher Loan Forgiveness Payment Application
The Common Manual has been revised to state that unless instructed otherwise by the borrower, a lender must apply a teacher loan forgiveness payment received on the borrower’s behalf first to any outstanding unsubsidized Federal Stafford loan balances, next to any outstanding subsidized Federal Stafford loan balances, and then to any eligible outstanding Federal Consolidation loan balances.
Affected Sections: 13.9.B Teacher Loan Forgiveness Program
Effective Date: Teacher Loan Forgiveness Applications received after October 1, 1998.
Basis: §682.215(f)(5).