The Common Manual Governing Board recently approved changes that modify policies in the Common Manual

Oklahoma Guaranteed Student Loan Program

Common Manual Update - 109

Unified Student Loan Policy

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, Compliance, and Training department at (405) 234-4432 or 1-800-247-0420.

Chapter 4: School Participation

FSA Administration Training Requirement

The Common Manual has been revised to include information on the Fundamentals of Title IV Administration Training Workshop offered by the Department. A school must send at least two representatives, including both its president or chief executive officer (CEO) and the financial aid administrator (FAA). Also, if a school changes ownership, structure, or governance, its representatives must attend the training. The training must be completed up to 12 months prior to but no later than 12 months after the school executes its Program Participation Agreement (PPA) or experiences a change in ownership, structure, or governance.

The CEO may designate another school executive-level officer to attend the training in lieu of the CEO. However, the attending FAA must be the person designated by the school to be responsible for administering the Title IV programs at the school. If the school uses a consultant to administer the Title IV programs, the consultant must attend the training as the school’s FAA. However, the Department strongly recommends that a financial aid employee from the school attend the training along with the consultant.

The school may request from the Department a waiver of the training requirement for the FAA and/or the CEO. The Department may grant or deny the waiver for the required individual, require another official to take the training, or require alternative training.

Affected Sections: 4.2.B Financial Aid Administrator

Effective Date: Retroactive to the implementation of the Common Manual.

Basis: 34 CFR 668.13(a)(2) and (3); 1995-1996 Federal Student Financial Aid Handbook, Chapter 3, page 3-168.

eZ-Audit Requirement

The Common Manual has been revised to include the requirement for schools participating in a Title IV program to submit audited financial statements and compliance audits to the Department electronically through eZ-Audit.http://ezaudit.ed.gov. Non-profit and public schools must submit a copy of the A-133 report in writing to the Federal Audit Clearinghouse, in addition to submitting the A-133 to the Department through eZ-Audit.

Affected Section: 4.3.A General School Financial Responsibility Requirements

Effective Date: Audited financial statements and compliance audits submitted by a school on or after June 16, 2003.

Basis: 2003-2004 Federal Student Aid Handbook, Volume 2, Chapter 11, page 2-334; 2006-2007 Federal Student Aid Handbook, Volume 2, chapter 12, p. 2-214.

Chapter 13: Claim Filing, Discharge, and Forgiveness

Closed School and the Transfer of Academic Credits or Clock Hours

The Common Manual has been revised to include the statement that a borrower who transfers to another school all or a portion of the academic credits or clock hours earned at the closed school is not eligible for closed school loan discharge. Previous policy did not specifically state that the borrower is ineligible for discharge if he or she transfers only a portion of the previously earned academic credits or clock hours.

Affected Section: 13.8.B Closed School

Effective Date: Retroactive to the implementation of the Common Manual.

Basis: Preamble to final rules, Federal Register dated April 29, 1994, page 22466, discussion point number 20.

Chapter 15: Federal Consolidation Loans

Variable Interest Rate Consolidation Loans

The Common Manual has been updated by removing text in section 15.2 pertaining to Consolidation loan interest rates for applications received by the lender between November 13, 1997, and September 30, 1998, inclusive. This information appears in appendix H of the manual for historical purposes.

Affected Section: 15.2 Borrower Eligibility and Underlying Loan Holder Requirements

Effective Date: Upon approval by the Governing Board

Basis: None.

Appendix G: Glossary

Waiver for Rehabilitation of Defaulted Loans

Policy in section H.4, Statutory and Regulatory Waivers, item #20, is revised by updating the rehabilitation agreement requirements to reflect that a borrower must make nine payments received by the holder within 20 days of the due date during 10 consecutive months.

Affected Section: appendix H.4

Effective Date:                         Loan rehabilitation waivers granted on or after July 1, 2006.
                                                A guarantor has the option of considering a borrower to have met the
                                                new rehabilitation standard if at least one of the borrower’s payments
                                                under the rehabilitation agreement is made on or after July 1, 2006.

Basis: Higher Education Act of 1965, Section 428F(a)(1)(A), as amended by the Higher Education Reconciliation Act (HERA) of 2005; 34 CFR 682.405; Dear Colleague Letter GEN-06-02.