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 5: Borrower Eligibility

Cessation of Collection Activity

The Common Manual has been updated to remove language stating that a borrower is ineligible for a FFELP loan if he or she has had a prior FFELP loan partially or totally written off by the lender.  A borrower whose prior FFELP loan has been partially or totally written off by a lender is not required to reaffirm the written-off loan as a condition of eligibility for a new FFELP loan.

Affected Sections:                  5.3 Prior Loan Written Off

Effective Date:                        Retroactive to the implementation of the Common Manual

Basis:                                      §682.201(a)(4); DCL 96-L-186, Q & A #4, #5, #7, and #8

Borrower Eligibility

The Common Manual is revised to remove language indicating that a defaulted loan may be discharged because the parent borrower is unable to complete a program of study due to the school's closing.  A PLUS loan may be discharged if the student for whom the parent borrowed a PLUS loan is unable to complete a program of study due to the school's closing.

Affected Sections:                  5.2.E Prior Default

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

Basis:                                      None

Chapter 6: School Certification

Eligibility for Additional Unsubsidized Stafford Loan Funds

The Common Manual has been revised to align information in this subsection with longstanding federal regulations.   Revised language states that in order for a school to certify additional unsubsidized Stafford loan funds for a dependent student, the student’s parent must be unable to obtain PLUS loan funds and the student=s family must be otherwise unable to meet the expected family contribution (EFC).

Affected Sections:                  6.15.D Additional Unsubsidized Stafford Loan Certification

Effective Date:                        Retroactive to the implementation of the Common Manual

Basis:                                      §682.201(a)(3)