Oklahoma Guaranteed Student Loan Program
Common Manual Update - 106
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 4: School Participation
Institutional Eligibility and Reporting Requirements
The Common Manual has been revised to state that schools must submit requests for initial certification, recertification, reinstatement, a change in ownership, updates to a current approval or designation as an eligible institution to the Department via the Application for Approval to Participate in the Federal Student Financial Aid Programs (E-App).
Affected Sections: 4.1.A Establishing Eligibility
4.1.C
Maintaining Eligibility
Effective Date: Applications for recertification, reinstatement, or changes in ownership submitted by the school on or after the publication date of the 1998-1999 Federal Student Aid Handbook. Applications for reporting changes to a current approval submitted by the school on or after the publication date of the 1999-2000 Federal Student Aid Handbook. Applications for initial certification submitted by the school on or after the publication date of the 2000-2001 Federal Student Aid Handbook.
Basis: 1998-1999 Federal Student Aid Handbook, Chapter 3, Section 9, page 3-202; 1999-2000 Federal Student Aid Handbook, Chapter 10, page 210; and the 2000-2001 Federal Student Aid Handbook, Volume 2, Chapter 10, page 2-232.
Chapter 10: Loan
Servicing &
Appendix B: PLUS/SLS Refinancing
Return of the Federal Default Fee (or Guarantee Fee)
Subsection 10.11.E of the Common Manual has been revised to reflect the change in terminology from guarantee fee to federal default fee and to clarify that if a lender deducted the federal default fee (or guarantee fee), and/or origination fee from the borrower's loan proceeds, the lender must reduce the fee(s) proportionate to the amount of returned loan funds that the lender receives from a school. In addition, section B.2 has been revised to clarify that in refinancing a loan to secure a variable interest rate, the guarantor may not charge the borrower a federal default fee (formerly guarantee fee), nor may the lender deduct the fee from the borrower’s loan proceeds.
Affected Sections: 10.11.E
Applying Funds Returned by the School
B.2 Option 2:
Refinancing to Secure a Variable Interest Rate
Effective Date: Federal
Basis: Higher Education Act of 1965, Section 428(b)(1)(H)(i) and (ii) and Section 428H(h), as amended by the Higher Education Reconciliation Act (HERA) of 2005; Dear Colleague Letter GEN-06-02.
Chapter 15: Federal Consolidation Loans
Elimination of the Single-Holder Rule
The Common Manual has been revised to reflect statutory changes resulting from the Emergency Supplemental Appropriations Act, that allow a borrower of loans eligible for FFELP loan consolidation to seek consolidation from any lender even if the borrower's eligible loans are held by one holder.
Affected Section: 15.2 Borrower Eligibility and
Underlying Loan Holder Requirements
15.3.C Reviewing the Loan
Verification Certificate
Effective Date: Federal Consolidation loan applications received by the lender on or after June 15, 2006.
Basis: Higher Education Act of 1965, Section 428C(b)(1)(A)(i)and (ii), as amended by the Emergency Supplemental Appropriations Act for Defense, the Global War on Terror and Hurricane Recovery, 2006 (P.L.109-234); Dear Colleague Letter GEN-06-12.
Chapter 16: Cohort Default Rates and Appeals
Cohort Default Rate Notification
The Common Manual has been revised to include an explanation of the electronic process by which the Department notifies a domestic school of its draft and official cohort default rates (eCDR) through the Student Aid Internet Gateway (SAIG). All domestic schools are required to enroll in the SAIG. Schools are required to designate a SAIG destination point for the receipt of the eCDR notifications. The Department mails draft and official cohort default rate notifications foreign schools.
Affected Sections: 16.1 Overview of Cohort Default Rates and Terminology
Effective Date: Domestic school’s receipt of draft and official cohort default rate notifications on or after June 1, 2005.
Basis: Dear Colleague Letter GEN-03-05; 2006-2007 Federal Student Aid Handbook, Volume 2, Chapter 10, page 2-182.
Appendix B: PLUS/SLS Refinancing
Refinancing Fixed-Rate PLUS or SLS Loans
Appendix B of the Common Manual explains policies for the refinancing of fixed-rate PLUS and SLS loans to obtain a variable interest rate or to combine repayment. Revised policy clarifies that these refinancing options are applicable only to fixed-rate PLUS or SLS loans first disbursed prior to July 1, 1987.
Affected Sections: B.2 Option 2: Refinancing to Secure a Variable Interest
Rate
B.3 Option 3:
Refinancing by Obtaining a New Loan
Effective Date: PLUS or SLS loans first disbursed prior to July 1, 1987.
Basis: Higher Education Act of 1965, Section 428B(e)(2) and (3), as amended; §682.209(e) and (f).