Oklahoma Guaranteed Student Loan Program
Common Manual Update - 114
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, Compliance, and Training department at (405) 234-4432 or 1-800-247-0420.
Chapter 2: About the FFELP
Common Forms
The Common Manual has been revised by deleting reference to the Ad Hoc Standardization Committee and to refer to the National Council of Higher Education Loan Programs (NCHELP) task forces as NCHELP workgroups. Revised policy adds that the common default aversion and claim forms are developed and updated by NCHELP. Because these are not forms used by the Department to collect information, the Department does not participate in their development or update, and the forms are not subject to the Office of Management and Budget (OMB) review and approval process. Further, the listings of various common forms in Subsection 2.3.C have been updated.
Affected Sections: 2.3.C Common Forms
Effective Date: Upon approval by the Governing Board on September 20, 2007.
Basis: None.
Chapter 5: Borrower Eligibility
Borrower Certification of the Statement of Educational Purpose on the PLUS MPN
The Common Manual is being revised to clarify that the requirement that a PLUS borrower certify a statement of educational purpose is fulfilled when the borrower signs the Federal PLUS Application and Master Promissory Note (PLUS MPN), and to remove any reference in Subsection 5.1.C to the party with whom the borrower files that PLUS MPN. In addition, the regulatory citations for this requirement have been corrected.
Affected Sections: 5.1.C Graduate or Professional Student and Parent PLUS Loan Borrower Eligibility Requirements
Effective Date: Retroactive to the implementation of the Common Manual.
Basis: '668.24(c); '668.32(h); '682.201(b)(1); '682.201(c)(1)(v); '682.610(b).
Chapter 5:
Borrower Eligibility &
Chapter 6: School Certification
Student Eligibility Requirements
The Common Manual has been updated to clarify that a student must be enrolled or accepted for enrollment on at least a half-time basis to be eligible for a Stafford or PLUS loan. In addition, cross-references to Section 5.11, AStudent Enrollment Requirements,@ were added to Subsections 5.1.B, 6.15.B, and 6.15.C.
Affected
Sections: 5.1.B Student Eligibility Requirements
6.15.B
6.15.C PLUS Loan Certification
Effective Date: Retroactive to the implementation of the Common Manual.
Basis: '668.32(a)(1)(i) and (iii).
Chapter 6: School Certification
The Common Manual
has been updated to clarify that a dependent student who is taking preparatory
coursework necessary for enrollment in an undergraduate program is eligible to
borrow the base
Affected
Sections: 6.11.A Stafford Annual Loan Limits
Figure 6-4
Effective Date: Loans first disbursed on or after July 1, 2007.
Basis: HEA
'428(b)(1)(A)(vi)(I), as amended by the Higher Education Reconciliation Act
(HERA) of 2005; '682.204(a)(6)(i); DCLs GEN-06-02/FP-06-01 and
GEN-06-03/FP-06-02.
Increased Unsubsidized
The Common Manual has been revised to state that a health profession
student must be enrolled at least half time in an eligible health profession
program at an eligible school in order to qualify for the increased
unsubsidized
Affected Sections: 6.11.D Increased
Unsubsidized
Effective Date: Loan periods beginning on or after May 1, 1999.
Basis: 05-06 FSA Handbook, Volume 3, Chapter 4, p. 3-91.
Additional Unsubsidized
The Common Manual
is being revised to clarify that a dependent student who is attending a school
that participates in the Federal PLUS Loan Program and whose parent is unable
to obtain a PLUS loan is entitled to borrow additional unsubsidized
Affected Sections: 6.15.D Additional Unsubsidized
Effective Date: Retroactive to the implementation of the Common Manual.
Basis: '682.201(a)(3); '682.603(e).
Chapter 8: Loan Delivery
Student Authorization to Release Loan Funds Received via EFT or Master Check
Figure 8-6, ADelivery or Return of Loan Funds,@ in the Common Manual has been updated by adding a footnote to clarify that the required authorization for the school to deliver loan funds received by electronic funds transfer (EFT) or master check is included on the Master Promissory Note (MPN). However, if the MPN is signed by a third party with power of attorney for the borrower, the school must obtain a separate EFT authorization from the borrower. This requirement does not apply to students enrolled in a study-abroad program, as detailed in Subsection 7.7.E.
Affected Sections: Figure 8-6 Delivery or Return of Loan Funds
Effective Date: Retroactive to the implementation of the Federal Stafford Loan Master Promissory Note (Stafford MPN).
Basis: None.
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Chapter 11:
Deferment and Forbearance,
Appendix G: Glossary &
Appendix H: History of the FFELP and the Common Manual
The Common Manual has been updated by removing text from Subsections 11.3.A and 11.3.C that addresses an Armed Forces deferment for a borrower serving in Operations Desert Shield/Desert Storm. The text from Subsection 11.3.A will be relocated, for historical purposes, to Section H.4, History of Statutory and Regulatory Waivers. The text from Subsection 11.3.C will be relocated, for historical purposes, to Section H.1. In addition, a reference to existing text in Section H.1 under April 9, 1991, regarding a post-deferment grace period applicable to Operations Desert Shield/Desert Storm has been added to Appendix G under the definition of APost-Deferment Grace Period.@
Affected
Sections: 11.3.A Eligibility CriteriaCArmed Forces
11.3.C Length of DefermentCArmed Forces
Appendix G
Appendix H
Effective Date: Upon approval by the Governing Board on September 20, 2007.
Basis: None.
Chapter 13: Claim Filing, Discharge, and Forgiveness
Partial Discharge of a Consolidation Loan
The Common Manual has been revised by adding text describing the use of NCHELP’s Request for Reimbursement Due to Partial Discharge of a Federal Consolidation Loan form. The form may be used by a lender to request a partial discharge of the Consolidation loan for a portion that represents any underlying loans that are eligible for discharge due to disability (only for comade Consolidation loans), closed school, death, or false certification discharge. A new figure has been added to the Manual that will help lenders determine what information must be provided on the Request for Reimbursement Due to Partial Discharge of a Federal Consolidation Loan form. Detailed descriptions of these items are located in the Instructions for Reimbursement Due to Partial Discharge of a Federal Consolidation Loan form.
Affected Sections: 13.8 Discharge
Effective Date: Lenders may have begun using the Request for Reimbursement Due to Partial Discharge of a Federal Consolidation Loan form upon the applicable publication date.
Basis: None.
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