Oklahoma Guaranteed Student Loan Program
Common Manual Update - 117
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 3: Lender Participation &
Chapter 15: Federal Consolidation Loans
Lender Fee
The Common Manual has been revised to comply with statutory changes derived from the College Cost Reduction and Access Act (P.L. 110-84). For loans first disbursed on or after October 1, 1993, and prior to October 1, 2007, a lender is charged a lender fee equal to 0.5% of the principal amount of each FFELP loan made. Beginning with loans first disbursed on or after October 1, 2007, a lender is charged a lender fee equal to 1.0% of the principal amount of each FFELP loan made. Conforming changes have also been made to the glossary definition of “Lender Fee” in Appendix G.
| Affected Sections: |
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3.5.A Federal Origination Fee and Lender Fee |
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15.1.A Agreement to Guarantee Federal Consolidation Loans |
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Appendix G |
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| Effective Date: |
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Loans first disbursed on or after October 1, 2007. |
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| Basis: |
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Higher Education Act of 1965, Section 438(d), as amended by the College Cost Reduction and Access Act (P.L. 110-84). |
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Chapter 5: Borrower Eligibility
Student Eligibility Requirements
The Common Manual has been revised to clarify that, if the only Title IV aid applied for is a parent PLUS loan, the student is not required to certify a statement of educational purpose by completing the Free Application for Federal Student Aid (FAFSA). To receive a parent PLUS loan without completing a FAFSA, the student must complete and submit to the school a separate statement of educational purpose.
| Affected Sections: |
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5.1.B Student Eligibility Requirements |
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| Effective Date: |
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Retroactive to the implementation of the Common Manual. |
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| Basis: |
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§668.32(h). |
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Chapter 6: School Certification
Additional Unsubsidized Stafford Loan Eligibility for a Dependent Student
Subsection 6.15.D of the Common Manual has been reorganized to improve the clarity of the subsection and to add another exceptional circumstance in which a dependent student is eligible to receive additional unsubsidized Stafford loan funds. Also, language is added to clarify that the school must document its reason if it refuses to certify the loan or to certify the full amount of unsubsidized Stafford loan funds for which the student is eligible.
| Affected Sections: |
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6.15.D Additional Unsubsidized Stafford Eligibility for a Dependent Student |
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| Effective Date: |
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Retroactive to the implementation of the Common Manual. |
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| Basis: |
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None. |
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Chapter 7: Loan Origination
Disclosure Requirements
The Common Manual has been revised to remove the requirement that a lender provide, through the initial disclosure, information on how a borrower's interest rate is calculated. This information is no longer necessary as FFELP loan interest rates are currently fixed.
| Affected Sections: |
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7.6.A General Initial Disclosure Requirements |
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| Effective Date: |
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Disclosures provided by the lender to a borrower on or after July 1, 2006. |
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| Basis: |
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§682.205(a)(2)(vii). |
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Chapter 8: Loan Delivery
Overawards
The Common Manual has been revised to clarify that an overaward may occur not only from a student’s receipt of additional Title IV funds, but also from receiving additional non-Title IV financial assistance, such as a scholarship or an alternative loan.
| Affected Sections: |
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8.6 Managing Overawards |
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| Effective Date: |
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Retroactive to the implementation of the Common Manual. |
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| Basis: |
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HEA §428G(d)(2); §682.200; §682.604(h); and 07-08 FSA Handbook, Volume 5, Chapter 1, p. 5-6. |
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Chapter 10: Loan Servicing
Excess Interest Rebates
Subsection 10.9.C of the Common Manual is being revised to remove historic information on excess interest rebates, called “windfall profits," which were last required in 1994. This information is present in Section H.2. The information is being replaced with the current requirement for excess interest rebates, effective for loans first disbursed on or after April 1, 2006.
| Affected Sections: |
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10.9.C Excess Interest Rebates |
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| Effective Date: |
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Upon approval by the Governing Board. |
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| Basis: |
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§682.305(d)(1). |
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Chapter 15: Federal Consolidation Loans
Consolidation Loan Verification Certificates
The Common Manual has been revised to clarify the circumstances under which a loan holder may decline to complete a Consolidation Loan Verification Certificate (LVC). The list of extenuating circumstances has been expanded and Manual text is expanded to note the cases in which the loan holder must notify the Federal Student Aid Financial Partners staff of its decision not to complete an LVC.
| Affected Sections: |
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15.3.C Reviewing the Loan Verification Certificate |
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| Effective Date: |
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Consolidation Loan Verification Certificates (LVCs) received by a loan holder on or after May 22, 2007. |
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| Basis: |
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DCL GEN-07-03/FP-07-07. |
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