Oklahoma Guaranteed Student Loan Program
Common Manual Update - 108
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 OGSLP’s Policy, Compliance and Training department at (405) 234-4432 or 1-800-247-0420.
Chapter 6: School Certification
The Common Manual has been revised to clarify the content of Figure 6-4 by changing the title to "Stafford Undergraduate Annual and Aggregate Loan Limits." In addition, the numerator in Proportional Proration Calculation #2 (for prorating loan eligibility in a program of study that is less than one academic year in length) has been corrected to specify "number of weeks enrolled in program" divided by "number of weeks in academic year."
Affected Section: Figure
6-4
Effective Date: Retroactive to the implementation of the Common Manual.
Basis: 34 CFR 682.204(a)(1)(iii) and (d)(1)(iii); 2006-2007 Federal Student Aid Handbook, Volume 3, Chapter 4, page 3-80.
Chapter 7: Loan Origination
Lender Disbursement through an Escrow Agent
The Common Manual has been revised to reflect statutory changes derived from the HERA requiring a lender that disburses loan proceeds through an escrow agent to make funds available to the escrow agent no earlier than 10 days prior to the date of the scheduled disbursement.
Affected Section: 7.7 Disbursing the Loan
Effective Date: Loan proceeds paid by a lender to an escrow agent on or after July 1, 2006.
Basis: Higher
Education Act of 1965, section 428(i)(1), as amended by the Higher Education
Reconciliation Act (HERA) of 2005; Dear
Colleague Letter GEN-06-02/FP-06-01.
Chapter 9: School Reporting Responsibilities and the Return of Title IV Funds
NSLDS Ad Hoc Reporting
The Common Manual has been updated to include information regarding the National Student Loan Data System (NSLDS) ad hoc reporting. In addition to submitting regular reports to the NSLDS, a school is required to report enrollment status changes that affect the grace period, repayment responsibility, or deferment privileges of a borrower. An ad hoc report must be submitted within 30 days unless the school expects to submit a Submittal File within the next 60 days. Revised policy also provides ad hoc reporting methods the school may use.
A school (or its designated servicer) must respond to all requests for borrower information from guarantors and lenders for information about recipients of Title IV loan funds—including information needed to locate the borrower, to determine the borrower’s eligibility for deferment, or to establish the borrower’s repayment schedule.
In addition, subsection 9.2.B has been renamed “Ad Hoc Reporting” and a new subsection 9.2.C “Information Sharing with the Department, a Lender, or a Guarantor” has been added.
Affected Sections: 9.2 Student Enrollment Status Reporting
9.2.B Reporting Student Enrollment Changes to the Lender or Guarantor
Effective Date: Enrollment status changes reported by a school on or after March 1, 1997.
Basis: §682.610(c)(2); Dear Colleague Letters GEN-96-17 and GEN-96-L-189; October 2005 NSLDS Enrollment Reporting Guide, Chapter 3, Section 3.3.
Chapter 11: Deferment and Forbearance
Deferment Eligibility
The Common Manual has been revised to state consistently that a deferment is available to a borrower who is experiencing conditions that qualify the borrower for the deferment, thereby emphasizing that deferment is an entitlement for an eligible borrower.
Affected Section: 11.2 ACTION
Program Deferment
11.3 Armed Forces Deferment
11.4 Economic
Hardship Deferment
11.6 In-School Deferment and Summer Bridge
11.7 Internship/Residency Deferment
11.8 Military Deferment
11.9 National Oceanic and Atmospheric
Administration Corps Deferment
11.10 Parental Leave Deferment
11.11 Peace Corps Deferment
11.12 Public Health Service Deferment
11.14 Tax-Exempt Organization Volunteer Deferment
11.15 Teacher Shortage Area or Targeted Teacher
Deferment
11.18 Working Mother Deferment
Effective Date: Retroactive to the implementation of the Common Manual.
Basis: §682.210(a)(1)(i).
Chapter 13: Claim Filing, Discharge, and Forgiveness
Guarantor Review of Exceptional Performer Claims
The Common Manual has been revised to state that a guarantor may not return a claim due to errors in repayment conversion, due diligence, or timely filing to a lender or lender servicer designated as an exceptional performer. However, if the lender is unable to provide a complete claim or if the loan is otherwise ineligible for claim payment (such as due to a previous, unresolved loss of loan guarantee) the guarantor must return the claim file despite the lender's or servicer's exceptional performer designation.
Affected Section: 13.2 Claim Returns
Effective Date: Claims filed by exceptional performer lenders and lender servicers on or after March 2004.
Basis: §682.415(b)(5)(i) and (ii); Dear Colleague Letter FP-04-04, Q1.17/A1.17, Q1.22/A1.22, and Q1.24/A1.24.
Bankruptcy Claims and Lenders Designated as Exceptional Performers
The Common Manual has been revised to state that bankruptcy claims filed by a lender designated as an exceptional performer are subject to review for the lender's compliance with standard bankruptcy policies and requirements. The lender’s failure to comply with those requirements may result in the guarantor’s return of the bankruptcy claim to the lender, or, if the claim has been purchased, the lender’s repurchase of the loan(s).
Affected Section: 13.1.A Claim Filing Requirements
13.5 Claim Repurchase
Effective Date: Bankruptcy notifications received by the lender or after July 1, 2007, unless implemented earlier by the guarantor.
Basis: 34
CFR 682.402(f)(4); FP-04-04, Q1.17/A1.17 and Q1.22/A1.22; Private letter
guidance issued by the Department on March 28, 2006.
False Certification Claim Purchase Time Frame
Common policy language for the false certification claim payment time frame has been revised in section 13.3 to be more consistent with the language in subsection 13.8.D. The guarantor has 30 days from the date the guarantor approves the loan discharge application to pay the false certification claim. Language in both subsections has been revised to acknowledge that the loan may be determined to be dischargeable under several circumstances, including the guarantor’s approval of a borrower’s loan discharge application, the guarantor’s own discharge determination, and the guarantor’s receipt of notification from the Department that the borrower is eligible for the loan discharge.
Affected Section: 13.3
Claim Purchase or Discharge Payment
13.8.D
False Certification by the School
Effective Date: Retroactive to the implementation of the Common Manual.
Basis: §682.402(e)(7)(ii).
Appendix G: Glossary
Delinquency Period and the Definition of Default
Appendix G of the Common Manual has been revised to align the definition of default with current manual policy in section 13.6 and federal guidance in §682.200(b) and Appendix D to 34 CFR Part 682. The reference to 270 “consecutive” days has been removed, and the manual glossary now defines default as the failure of a borrower (or endorser or comaker, if any) to make installment payments when due, provided that this failure persists for a period of 270 days for a loan repayable in monthly installments.
Affected Section: appendix G
Effective Date: Retroactive to the implementation of the Common Manual.
Basis: §682.200(b); Appendix D to 34 CFR Part 682, Introduction, C. Due Diligence.