Help -
Help for Webmasters
« back to results for ""
Below is a cache of http://www.nela.net/~content/~downloads/cm0303.pdf. It's a snapshot of the page taken as our search engine crawled the Web.
The web site itself may have changed. You can check the current page or check for previous versions at the Internet Archive. Yahoo! is not affiliated with the authors of this page or responsible for its content. MARCH 2003 INTERIM UPDATE BULLETIN SUMMARY TABLE : MARCH 2003 INTERIM UPDATE BULLETIN SUMMARY TABLE # Subject Summary of Change to Common Manual Type of Update Effective Date 631 Economic Hardship Deferment 7.10.P Economic Hardship
Deferment
Clarifies that the lender must include defaulted loans when determining the borrowers Title IV debt burden if the borrower provides documentation that he or she has made repayment arrangements satisfactory to the holder of the defaulted loans. Federal Retroactive to the implementation of the Common Manual. 641 Next Due Dates for PLUS and SLS Loans 7.4.B Establishing the First
Payment Due Date
7.4.C Late Notification
Permits lenders to establish a PLUS or SLS next payment due date after a period of forbearance, deferment or post-deferment grace that is no later than 60 days following the end of the forbearance, deferment or post deferment grace period. Guarantor Next payment due dates for PLUS and SLS loans established by the lender on or after November 1, 2002. 642 First and Next Payment Due Dates for Stafford Loans 7.4.B Establishing the First
Payment Due Date
7.9.G Resuming Repayment
after Deferment
7.10.B Summer Bridge
Extension
7.11.K Resuming
Repayment after
Forbearance
Extends the time period for a lender to establish a Stafford first payment due date from 45 to 60 days following the repayment start date. Also, extends Federal First payment due dates and next payment due dates established by the lender on or after November 1, 2002. the time period for a lender to establish a first payment due date after a period of forbearance, deferment, or post-deferment grace from 45 to 60 days. 643 Total and Permanent Disability Claims 8.4 Claim Returns CCI 8.4 Claim Returns 8.6 Claim Purchase CCI 8.6 Claim Purchase Increases the time period for the guarantor to purchase an approved disability claim or return the disability claim to the lender from 45 to 90 days. Federal Total and Permanent Disability claims received by the guarantor on or after July 1, 2003, unless implemented earlier by the guarantor. 644 Claim Purchase Time Frames 8.6 Claim Purchase CCI 8.6 Claim Purchase Adds information regarding the claim purchase deadline for an unpaid refund discharge claim for an open school. The guarantor has a total of 165 days to process this type of discharge (120 days to resolve the unpaid refund discharge with the school and 45 days to authorize payment of the claim or return it to the lender). Federal Unpaid refund discharges granted on or after July 1, 2000, for loans disbursed, all or in part, on or after January 1, 1986. 645 Guarantee Processing 6.1.B Guarantee of the
Loan
6.1.G Processing the
Guarantee Disclosure
Combines related information from two subsections and eliminates redundant information from subsection 6.1.G. Also eliminates information related to guarantor processing. Organizational July 1, 2003. 646 Loan Disbursement 6.2.G Reissuing a Loan
Disbursement
Provides clarity by explaining the conditions required for the reissue of a loan disbursement. Organizational July 1, 2003. 647 Reissuing a Loan Disbursement 6.2.G Reissuing a Loan
Disbursement
Permits a lender to reissue a loan disbursement, at the schools request, no later than 120 days after the earlier of the students last date of attendance on at least a half- time basis or the last day of the period of Guarantor Disbursements reissued by the lender on or after July 1, 2003, unless implemented earlier by the lender. Lenders may implement these provisions no earlier than November 1, 2002 enrollment for which the loan is intended. In exceptional circumstances the lender may reissue a loan disbursement more than 120 days after the last date of the students eligible enrollment or more than 120 days after the original late disbursement was made, so that the student will not be harmed by circumstances beyond his or her control. 2002. 648 Eligible Lender Definition 3.1 Eligible Lenders
Clarifies that FFELP loans held in trust by a trustee lender are not considered part of the trustee lenders consumer credit function to determine if the lender meets the definition of an eligible lender as prescribed by federal regulations Federal Retroactive to the implementation of the Common Manual. 649 Leave of Absence 4.5 Leave of Absence
Appendix G
Allows a school to grant multiple leaves of absence provided that the student provides a request stating the reason for each leave, and the total number of days for all of the leaves does not exceed 180 days in a 12-month period. At schools offering a clock hour program or a non-term credit hour program, students are not required to complete the same coursework he or she began prior to the leave. Federal For leaves of absence granted by the school on or after July 1, 2003, unless implemented earlier by the school. Schools may implement these provisions no earlier than November 1, 2002. 650 Post-Withdrawal Disbursement and Late Delivery 4.7.A Return Amounts for
Title IV Grant and Loan
Programs
Clarifies that prior to making a post-withdrawal disbursement of FFELP funds, the school must determine that the borrower is eligible for a late delivery under the provisions in subsection 6.3.H. Also increases the time frame for making the post-withdrawal disbursement of the credit balance from 90 to 120 days. Federal Post-withdrawal disbursements made by the school on or after July 1, 2003, unless implemented earlier by the school. Schools may implement the post- withdrawal determination time frame change no earlier than November 1, 2002. 651 Multiple Disbursement and Delayed Delivery Exemptions 5.8.D Determining the
Disbursement Schedule
6.2.B Multiple Disbursement
Requirements for Stafford Federal For loans certified on or after October 1, 2002. and PLUS Loans
6.3.E Delivery of Proceeds
6.3.I School Disbursement
and Delivery Requirements
Eliminates the exceptions for schools with low default rates to waive the multiple disbursement requirement for single term loans and the 30-day delayed delivery requirement for a first year undergraduate student who is a first time borrower. 652 Late Delivery by a School 6.3.E Delivery of Loan
Proceeds
6.3.H Late Delivery by a
School
Updates late delivery requirements to state that, except in the case of a PLUS loan, the Department must have processed the SAR or ISIR before the student became ineligible in order for the borrower to be eligible for a late delivery of loan funds. In addition, the time frame for a school to deliver a late disbursement has been extended from 90 to 120 days from the earlier of the end of the loan term or the date the student ceased at least half-time attendance. On an exceptional basis, with the approval of the Department, the school may deliver a late disbursement after the 120 day period. Federal Late delivery of FFEL loan proceeds by the school on or after July 1, 2003, unless implemented earlier by the school. Schools may implement these provisions no earlier than November 1, 2002. 653 Extending Repayment 7.6.B Repayment Terms
Removes the requirement that a borrower provide a written request to obtain an extension of his her payment period if the borrowers repayment is scheduled for less than 5 years. Federal Borrower requests received by the lender on or after July 1, 2003, unless implemented earlier by the lender. Lenders may implement these provisions no earlier than November 1, 2002. 654 Unemployment Deferment Revisions 7.10.E Unemployment
Deferment
Eliminates the requirement that a borrower provide detailed employment contact information or information about the employment agency with which he or she is registered. Updates back- dating requirements for Federal Borrower requests processed by the lender on or after July 1, 2003, unless implemented earlier by the lender. Lenders may implement these provisions no earlier than November 1, 2002 granting an initial unemployment deferment and processing requirements for extensions of unemployment deferments. Removes references to certifications previously required from residents of U.S. military bases in foreign countries or U.S. embassy compounds. 2002. 655 Economic Hardship Deferment Eligibility 7.10.P Economic Hardship
Deferment
Revises the calculation to be used to determine the borrowers eligibility for an economic hardship deferment. Federal Borrower requests processed by the lender on or after July 1, 2003, unless implemented earlier by the lender. Lenders may implement these provisions no earlier than November 1, 2002. 656 Verbal Forbearance Agreements 7.8.C Changing the
Borrowers Payment Due
Date
7.9.E Deferment of
Defaulted Loans
7.11.A Discretionary
Forbearance
7.11.B Administrative
Forbearance
7.11.F Forbearance Length
7.11.G Borrower Contact
during Forbearance
Permits a verbal agreement between the lender and the borrower for a discretionary forbearance. In this case, the lender must send the borrower and the endorser a notice to confirm the terms of the agreement within 30 days. Federal Borrower requests processed by the lender on or after July 1, 2003, unless implemented earlier by the lender. Lenders may implement these provisions no earlier than November 1, 2002. 657 Administrative Forbearance 7.11.B Administrative
Forbearance
Expands the lenders options to grant an administrative forbearance based on the lenders determination that the borrowers or the endorsers ability to repay the loan was adversely affected by a natural disaster, local or national emergency or a military mobilization. To grant an extension of the administrative forbearance for the same situation, the lender must document an agreement with the borrower Federal Administrative forbearance granted by the lender on or after July 1, 2003, unless implemented earlier by the lender. Lenders may implement these provisions no earlier than November 1, 2002. and endorser and obtain documentation supporting the borrowers request for the extension. Removes the requirement for the agreement with the borrower or endorser to be in writing. 658 Forbearance Notification 7.11.G Borrower Contact
during Forbearance
Removes the requirement for a lender to contact the borrower every 3 months and replaces it with new contact provisions. The lender is now required to contact the borrower once every 6 months and provide the borrower with specific information. Federal Borrower requests processed by the lender on or after July 1, 2003, unless implemented earlier by the lender. Lenders may implement these provisions no earlier than November 1, 2002. 659 Post-Withdrawal Disbursement 4.6 Withdrawal Dates
Clarifies that the requirement for an eligible borrower to be offered a post-withdrawal disbursement applies to both Stafford and PLUS loan funds. Correction Post-withdrawal disbursements made by the school on or after October 7, 2000, unless implemented earlier by the school. Schools may implement these provisions no earlier than July 1, 2000. 660 Bankruptcy Impact on PLUS Credit Evaluation and Loan Approval 5.2.F Effect of Bankruptcy
on Eligibility
5.4 Eligibility Requirements
Specific to PLUS Loans
Aligns information in subsection 5.2.F with section 5.4 regarding the impact of a bankruptcy filing on a PLUS applicants credit. Correction May 21, 2001. 661 New Borrower Date 7.9.A Conditions for Authorized Deferment 7.10.A In-School or Student Deferment
7.10.F Temporary Total
Disability Deferment
7.10.G Military Deferment
7.10.H Peace Corps
Deferment
7.10.I ACTION Program
Deferment
7.10.J Tax-Exempt
Organization Volunteer
Deferment
7.10.K
Internship/Residency
Deferment
7.10.L Parental Leave
Deferment Correction Retroactive to the implementation of the Common Manual. 7.10.M National Oceanic
and Atmospheric
Administration Corps
Deferment
7.10.N Teacher Shortage
Area or Targeted Teacher
Deferment
7.10.O Working Mother
Deferment
7.10.P Economic Hardship
Deferment
7.10.Q Public Health
Service Deferment
Updates new borrower definitions to coincide with information on new deferment forms recently published by the Department. The nations guarantors provide the following summaries to inform schools, lenders, and servicers of the latest Common Manual policy changes. These changes will appear in the manuals next annual update in 2003. These changes will also be incorporated into the March 2003 Integrated Common Manual. The Integrated Common Manual is available on NCHELPs website at www.NCHELP.org in the e-library, and it is also available on several guarantor websites. However, some of these changes are effective before the next update is scheduled to be delivered. Economic Hardship Deferment The Common Manual has been revised to coordinate the policy language related to the determination of the borrower's Title IV debt burden with federal regulations and with the requirements of the Economic Hardship Deferment Request form issued in Dear Colleague Letter GEN 02-08. The revised policy specifies that the lender must include defaulted loans when determining the borrowers Title IV debt burden for the purposes of an economic hardship deferment if the borrower provides documentation that he or she has made repayment arrangements satisfactory to the holder of the defaulted loans. Affected Sections: 7.10.P Effective Date: Retroactive to the implementation of the Common Manual.. Basis: 34 CFR 682.210(s); Economic Hardship Deferment Request form, issued in Dear Colleague Letter GEN-02-08. Policy Information: 631/Batch 101 Guarantor Comments: None. Next Due Dates for PLUS and SLS Loans When establishing the next payment due date on a PLUS or SLS loan following a period of forbearance, deferment, or post-deferment grace, the lender may provide the borrower a due date that is no later than 60 days after the end of the forbearance, deferment, or post-deferment grace period. The due date may be later than 60 days if the borrower makes a prepayment during the period that advances the due date. Previous policy required the lender to establish the next payment due date no later than 45 days after the end of the applicable period. Affected Sections: 7.4.B, 7.4.C Effective Date: Next payment due dates for PLUS and SLS loans established by the lender on or after November 1, 2002. Basis: None. Policy Information: 641/Batch 101 Guarantor Comments: None. First and Next Payment Due Dates for Stafford Loans The Common Manual has been revised to reflect revised regulations regarding Stafford loan first payment due dates and next payment due dates following periods of forbearance, deferment, and post-deferment grace. Lenders are required to establish a Stafford borrower's first payment due date no later than 60 days, not 45 days as previously required, after the repayment start date. Lenders also are required to establish the due date following a period of forbearance, deferment, or post- deferment grace no later than 60 days, not 45 days as previously required, after the end of that period. Previously, lenders were required to establish the first payment due date on a Stafford loan no later than 45 days after the repayment start date and the next payment due date no later than 45 days after a period of forbearance, deferment or post-deferment grace. Affected Sections: 7.4.B, 7.9.G , 7.10.B , 7.11.K Effective Date: First payment due dates and next payment due dates established by the lender on or after November 1, 2002. Basis: 34 CFR 682.209(a)(3)(ii). Policy Information: 642/Batch 101 Guarantor Comments: None. Claim Purchase and Claim Returns The Common Manual has been revised to reflect changes in federal regulations regarding the time frame in which the guarantor must purchase an approved total and permanent disability claim or return the claim. Guarantors are required to purchase an approved total and permanent disability claim or return the claim not later than 90 days after the claim was received by the guarantor. Previously, guarantors were required to purchase an approved total and permanent disability claim or return the claim not later than 45 days after receiving the claim from the lender. Affected Sections: 8.4, CCI 8.4, 8.6, CCI 8.6 Effective Date: Total and permanent disability claims received by the guarantor on or after July 1, 2003, unless implemented earlier by the guarantor. Basis: 34 CFR 682.402(h). Policy Information: 643/Batch 101 Guarantor Comments: None. Claim Purchase Time Frames The Common Manual has been updated to clarify that for an unpaid refund discharge request for a closed school, the guarantor is required to purchase an approved discharge request or return the request to the lender within 45 days. For an unpaid refund discharge request for an open school, the guarantor may take up to 120 days to resolve the unpaid refund with the school. The guarantor is required to purchase an approved discharge request or return it to the lender within 45 days from the date the eligibility determination is made. A cross reference to subsection 8.2.I has been added. Affected Sections: 8.6, CCI 8.6 Effective Date: Unpaid refund discharges granted on or after July 1, 2000, for loans disbursed, in whole or in part, on or after January 1, 1986. Basis: 34 CFR 682.402(l)(2)(ii); 34 CFR 682.402(n)(1). Policy Information: 644/Batch 101 Guarantor Comments: None. Organizational Changes to Text The Common Manual has been revised to eliminate information related to guarantor processing. The Common Manual was established to provide information regarding guarantor policies related to school and lender requirements and does not provide information related to guarantor services, processing, or those policies related to the guarantors' administrative issues. The manual has also been revised to combine related information from two subsections into one. Affected Sections: 6.1.B, 6.1.G Effective Date: July 1, 2003. Basis: None. Policy Information: 645/Batch 101 Guarantor Comments: None. Reissuing a Loan Disbursement The Common Manual has been revised to provide an explanation of the circumstances under which a lender may reissue a disbursement. A lender may reissue a loan disbursement if the original disbursement was made according to the school's disbursement schedule, the loan was canceled or not consummated, and the school subsequently determines that the student should have received the disbursement. Affected Sections: 6.2.G Effective Date: July 1, 2003. Basis: None. Policy Information: 646/Batch 101 Guarantor Comments: None. Reissuing a Loan Disbursement A school may request that a lender reissue a loan disbursement for a variety of reasons, such as when a check is lost. The Common Manual policy for the reissue of disbursements has been revised to state that, upon the receipt of a schools request, the lender may reissue a disbursement no later than 120 days after the earlier of the last day of the period of enrollment for which the loan is intended or the students last date of at least half-time enrollment. For proceeds originally disbursed as a late disbursement, the lender must reissue a disbursement no later than 120 days after the date on which the original late disbursement was made. In exceptional cases, the lender may reissue a loan disbursement more than 120 days after the last date of the students eligible enrollment or more than 120 days after the date on which the original late disbursement was made, so that the student will not be harmed by circumstances beyond his or her control. The request for reissue under this exception should come from both the student and the school, and the lender should document the exceptional circumstances. Affected Sections: 6.2.G Effective Date: Disbursements reissued by the lender on or after July 1, 2003, unless implemented earlier by the lender. Lenders may implement these provisions no earlier than November 1, 2002. Basis: None. Coordinates with 34 CFR 668.164(g) and private letter to the Student Loan Marketing Association from the Department, dated July 15, 1994. Policy Information: 647/Batch 102 Guarantor Comments: None. Eligible Lender Definition The Common Manual has been revised to clarify that loans held in trust by a trustee lender are not considered part of the trustee lenders consumer credit function when determining if a lender meets the definition of an eligible lender as prescribed by federal regulations. Affected Sections: 3.1 Effective Date: Retroactive to the implementation of the Common Manual. Basis:
The web site itself may have changed. You can check the current page or check for previous versions at the Internet Archive. Yahoo! is not affiliated with the authors of this page or responsible for its content. MARCH 2003 INTERIM UPDATE BULLETIN SUMMARY TABLE : MARCH 2003 INTERIM UPDATE BULLETIN SUMMARY TABLE # Subject Summary of Change to Common Manual Type of Update Effective Date 631 Economic Hardship Deferment 7.10.P Economic Hardship
Deferment
Clarifies that the lender must include defaulted loans when determining the borrowers Title IV debt burden if the borrower provides documentation that he or she has made repayment arrangements satisfactory to the holder of the defaulted loans. Federal Retroactive to the implementation of the Common Manual. 641 Next Due Dates for PLUS and SLS Loans 7.4.B Establishing the First
Payment Due Date
7.4.C Late Notification
Permits lenders to establish a PLUS or SLS next payment due date after a period of forbearance, deferment or post-deferment grace that is no later than 60 days following the end of the forbearance, deferment or post deferment grace period. Guarantor Next payment due dates for PLUS and SLS loans established by the lender on or after November 1, 2002. 642 First and Next Payment Due Dates for Stafford Loans 7.4.B Establishing the First
Payment Due Date
7.9.G Resuming Repayment
after Deferment
7.10.B Summer Bridge
Extension
7.11.K Resuming
Repayment after
Forbearance
Extends the time period for a lender to establish a Stafford first payment due date from 45 to 60 days following the repayment start date. Also, extends Federal First payment due dates and next payment due dates established by the lender on or after November 1, 2002. the time period for a lender to establish a first payment due date after a period of forbearance, deferment, or post-deferment grace from 45 to 60 days. 643 Total and Permanent Disability Claims 8.4 Claim Returns CCI 8.4 Claim Returns 8.6 Claim Purchase CCI 8.6 Claim Purchase Increases the time period for the guarantor to purchase an approved disability claim or return the disability claim to the lender from 45 to 90 days. Federal Total and Permanent Disability claims received by the guarantor on or after July 1, 2003, unless implemented earlier by the guarantor. 644 Claim Purchase Time Frames 8.6 Claim Purchase CCI 8.6 Claim Purchase Adds information regarding the claim purchase deadline for an unpaid refund discharge claim for an open school. The guarantor has a total of 165 days to process this type of discharge (120 days to resolve the unpaid refund discharge with the school and 45 days to authorize payment of the claim or return it to the lender). Federal Unpaid refund discharges granted on or after July 1, 2000, for loans disbursed, all or in part, on or after January 1, 1986. 645 Guarantee Processing 6.1.B Guarantee of the
Loan
6.1.G Processing the
Guarantee Disclosure
Combines related information from two subsections and eliminates redundant information from subsection 6.1.G. Also eliminates information related to guarantor processing. Organizational July 1, 2003. 646 Loan Disbursement 6.2.G Reissuing a Loan
Disbursement
Provides clarity by explaining the conditions required for the reissue of a loan disbursement. Organizational July 1, 2003. 647 Reissuing a Loan Disbursement 6.2.G Reissuing a Loan
Disbursement
Permits a lender to reissue a loan disbursement, at the schools request, no later than 120 days after the earlier of the students last date of attendance on at least a half- time basis or the last day of the period of Guarantor Disbursements reissued by the lender on or after July 1, 2003, unless implemented earlier by the lender. Lenders may implement these provisions no earlier than November 1, 2002 enrollment for which the loan is intended. In exceptional circumstances the lender may reissue a loan disbursement more than 120 days after the last date of the students eligible enrollment or more than 120 days after the original late disbursement was made, so that the student will not be harmed by circumstances beyond his or her control. 2002. 648 Eligible Lender Definition 3.1 Eligible Lenders
Clarifies that FFELP loans held in trust by a trustee lender are not considered part of the trustee lenders consumer credit function to determine if the lender meets the definition of an eligible lender as prescribed by federal regulations Federal Retroactive to the implementation of the Common Manual. 649 Leave of Absence 4.5 Leave of Absence
Appendix G
Allows a school to grant multiple leaves of absence provided that the student provides a request stating the reason for each leave, and the total number of days for all of the leaves does not exceed 180 days in a 12-month period. At schools offering a clock hour program or a non-term credit hour program, students are not required to complete the same coursework he or she began prior to the leave. Federal For leaves of absence granted by the school on or after July 1, 2003, unless implemented earlier by the school. Schools may implement these provisions no earlier than November 1, 2002. 650 Post-Withdrawal Disbursement and Late Delivery 4.7.A Return Amounts for
Title IV Grant and Loan
Programs
Clarifies that prior to making a post-withdrawal disbursement of FFELP funds, the school must determine that the borrower is eligible for a late delivery under the provisions in subsection 6.3.H. Also increases the time frame for making the post-withdrawal disbursement of the credit balance from 90 to 120 days. Federal Post-withdrawal disbursements made by the school on or after July 1, 2003, unless implemented earlier by the school. Schools may implement the post- withdrawal determination time frame change no earlier than November 1, 2002. 651 Multiple Disbursement and Delayed Delivery Exemptions 5.8.D Determining the
Disbursement Schedule
6.2.B Multiple Disbursement
Requirements for Stafford Federal For loans certified on or after October 1, 2002. and PLUS Loans
6.3.E Delivery of Proceeds
6.3.I School Disbursement
and Delivery Requirements
Eliminates the exceptions for schools with low default rates to waive the multiple disbursement requirement for single term loans and the 30-day delayed delivery requirement for a first year undergraduate student who is a first time borrower. 652 Late Delivery by a School 6.3.E Delivery of Loan
Proceeds
6.3.H Late Delivery by a
School
Updates late delivery requirements to state that, except in the case of a PLUS loan, the Department must have processed the SAR or ISIR before the student became ineligible in order for the borrower to be eligible for a late delivery of loan funds. In addition, the time frame for a school to deliver a late disbursement has been extended from 90 to 120 days from the earlier of the end of the loan term or the date the student ceased at least half-time attendance. On an exceptional basis, with the approval of the Department, the school may deliver a late disbursement after the 120 day period. Federal Late delivery of FFEL loan proceeds by the school on or after July 1, 2003, unless implemented earlier by the school. Schools may implement these provisions no earlier than November 1, 2002. 653 Extending Repayment 7.6.B Repayment Terms
Removes the requirement that a borrower provide a written request to obtain an extension of his her payment period if the borrowers repayment is scheduled for less than 5 years. Federal Borrower requests received by the lender on or after July 1, 2003, unless implemented earlier by the lender. Lenders may implement these provisions no earlier than November 1, 2002. 654 Unemployment Deferment Revisions 7.10.E Unemployment
Deferment
Eliminates the requirement that a borrower provide detailed employment contact information or information about the employment agency with which he or she is registered. Updates back- dating requirements for Federal Borrower requests processed by the lender on or after July 1, 2003, unless implemented earlier by the lender. Lenders may implement these provisions no earlier than November 1, 2002 granting an initial unemployment deferment and processing requirements for extensions of unemployment deferments. Removes references to certifications previously required from residents of U.S. military bases in foreign countries or U.S. embassy compounds. 2002. 655 Economic Hardship Deferment Eligibility 7.10.P Economic Hardship
Deferment
Revises the calculation to be used to determine the borrowers eligibility for an economic hardship deferment. Federal Borrower requests processed by the lender on or after July 1, 2003, unless implemented earlier by the lender. Lenders may implement these provisions no earlier than November 1, 2002. 656 Verbal Forbearance Agreements 7.8.C Changing the
Borrowers Payment Due
Date
7.9.E Deferment of
Defaulted Loans
7.11.A Discretionary
Forbearance
7.11.B Administrative
Forbearance
7.11.F Forbearance Length
7.11.G Borrower Contact
during Forbearance
Permits a verbal agreement between the lender and the borrower for a discretionary forbearance. In this case, the lender must send the borrower and the endorser a notice to confirm the terms of the agreement within 30 days. Federal Borrower requests processed by the lender on or after July 1, 2003, unless implemented earlier by the lender. Lenders may implement these provisions no earlier than November 1, 2002. 657 Administrative Forbearance 7.11.B Administrative
Forbearance
Expands the lenders options to grant an administrative forbearance based on the lenders determination that the borrowers or the endorsers ability to repay the loan was adversely affected by a natural disaster, local or national emergency or a military mobilization. To grant an extension of the administrative forbearance for the same situation, the lender must document an agreement with the borrower Federal Administrative forbearance granted by the lender on or after July 1, 2003, unless implemented earlier by the lender. Lenders may implement these provisions no earlier than November 1, 2002. and endorser and obtain documentation supporting the borrowers request for the extension. Removes the requirement for the agreement with the borrower or endorser to be in writing. 658 Forbearance Notification 7.11.G Borrower Contact
during Forbearance
Removes the requirement for a lender to contact the borrower every 3 months and replaces it with new contact provisions. The lender is now required to contact the borrower once every 6 months and provide the borrower with specific information. Federal Borrower requests processed by the lender on or after July 1, 2003, unless implemented earlier by the lender. Lenders may implement these provisions no earlier than November 1, 2002. 659 Post-Withdrawal Disbursement 4.6 Withdrawal Dates
Clarifies that the requirement for an eligible borrower to be offered a post-withdrawal disbursement applies to both Stafford and PLUS loan funds. Correction Post-withdrawal disbursements made by the school on or after October 7, 2000, unless implemented earlier by the school. Schools may implement these provisions no earlier than July 1, 2000. 660 Bankruptcy Impact on PLUS Credit Evaluation and Loan Approval 5.2.F Effect of Bankruptcy
on Eligibility
5.4 Eligibility Requirements
Specific to PLUS Loans
Aligns information in subsection 5.2.F with section 5.4 regarding the impact of a bankruptcy filing on a PLUS applicants credit. Correction May 21, 2001. 661 New Borrower Date 7.9.A Conditions for Authorized Deferment 7.10.A In-School or Student Deferment
7.10.F Temporary Total
Disability Deferment
7.10.G Military Deferment
7.10.H Peace Corps
Deferment
7.10.I ACTION Program
Deferment
7.10.J Tax-Exempt
Organization Volunteer
Deferment
7.10.K
Internship/Residency
Deferment
7.10.L Parental Leave
Deferment Correction Retroactive to the implementation of the Common Manual. 7.10.M National Oceanic
and Atmospheric
Administration Corps
Deferment
7.10.N Teacher Shortage
Area or Targeted Teacher
Deferment
7.10.O Working Mother
Deferment
7.10.P Economic Hardship
Deferment
7.10.Q Public Health
Service Deferment
Updates new borrower definitions to coincide with information on new deferment forms recently published by the Department. The nations guarantors provide the following summaries to inform schools, lenders, and servicers of the latest Common Manual policy changes. These changes will appear in the manuals next annual update in 2003. These changes will also be incorporated into the March 2003 Integrated Common Manual. The Integrated Common Manual is available on NCHELPs website at www.NCHELP.org in the e-library, and it is also available on several guarantor websites. However, some of these changes are effective before the next update is scheduled to be delivered. Economic Hardship Deferment The Common Manual has been revised to coordinate the policy language related to the determination of the borrower's Title IV debt burden with federal regulations and with the requirements of the Economic Hardship Deferment Request form issued in Dear Colleague Letter GEN 02-08. The revised policy specifies that the lender must include defaulted loans when determining the borrowers Title IV debt burden for the purposes of an economic hardship deferment if the borrower provides documentation that he or she has made repayment arrangements satisfactory to the holder of the defaulted loans. Affected Sections: 7.10.P Effective Date: Retroactive to the implementation of the Common Manual.. Basis: 34 CFR 682.210(s); Economic Hardship Deferment Request form, issued in Dear Colleague Letter GEN-02-08. Policy Information: 631/Batch 101 Guarantor Comments: None. Next Due Dates for PLUS and SLS Loans When establishing the next payment due date on a PLUS or SLS loan following a period of forbearance, deferment, or post-deferment grace, the lender may provide the borrower a due date that is no later than 60 days after the end of the forbearance, deferment, or post-deferment grace period. The due date may be later than 60 days if the borrower makes a prepayment during the period that advances the due date. Previous policy required the lender to establish the next payment due date no later than 45 days after the end of the applicable period. Affected Sections: 7.4.B, 7.4.C Effective Date: Next payment due dates for PLUS and SLS loans established by the lender on or after November 1, 2002. Basis: None. Policy Information: 641/Batch 101 Guarantor Comments: None. First and Next Payment Due Dates for Stafford Loans The Common Manual has been revised to reflect revised regulations regarding Stafford loan first payment due dates and next payment due dates following periods of forbearance, deferment, and post-deferment grace. Lenders are required to establish a Stafford borrower's first payment due date no later than 60 days, not 45 days as previously required, after the repayment start date. Lenders also are required to establish the due date following a period of forbearance, deferment, or post- deferment grace no later than 60 days, not 45 days as previously required, after the end of that period. Previously, lenders were required to establish the first payment due date on a Stafford loan no later than 45 days after the repayment start date and the next payment due date no later than 45 days after a period of forbearance, deferment or post-deferment grace. Affected Sections: 7.4.B, 7.9.G , 7.10.B , 7.11.K Effective Date: First payment due dates and next payment due dates established by the lender on or after November 1, 2002. Basis: 34 CFR 682.209(a)(3)(ii). Policy Information: 642/Batch 101 Guarantor Comments: None. Claim Purchase and Claim Returns The Common Manual has been revised to reflect changes in federal regulations regarding the time frame in which the guarantor must purchase an approved total and permanent disability claim or return the claim. Guarantors are required to purchase an approved total and permanent disability claim or return the claim not later than 90 days after the claim was received by the guarantor. Previously, guarantors were required to purchase an approved total and permanent disability claim or return the claim not later than 45 days after receiving the claim from the lender. Affected Sections: 8.4, CCI 8.4, 8.6, CCI 8.6 Effective Date: Total and permanent disability claims received by the guarantor on or after July 1, 2003, unless implemented earlier by the guarantor. Basis: 34 CFR 682.402(h). Policy Information: 643/Batch 101 Guarantor Comments: None. Claim Purchase Time Frames The Common Manual has been updated to clarify that for an unpaid refund discharge request for a closed school, the guarantor is required to purchase an approved discharge request or return the request to the lender within 45 days. For an unpaid refund discharge request for an open school, the guarantor may take up to 120 days to resolve the unpaid refund with the school. The guarantor is required to purchase an approved discharge request or return it to the lender within 45 days from the date the eligibility determination is made. A cross reference to subsection 8.2.I has been added. Affected Sections: 8.6, CCI 8.6 Effective Date: Unpaid refund discharges granted on or after July 1, 2000, for loans disbursed, in whole or in part, on or after January 1, 1986. Basis: 34 CFR 682.402(l)(2)(ii); 34 CFR 682.402(n)(1). Policy Information: 644/Batch 101 Guarantor Comments: None. Organizational Changes to Text The Common Manual has been revised to eliminate information related to guarantor processing. The Common Manual was established to provide information regarding guarantor policies related to school and lender requirements and does not provide information related to guarantor services, processing, or those policies related to the guarantors' administrative issues. The manual has also been revised to combine related information from two subsections into one. Affected Sections: 6.1.B, 6.1.G Effective Date: July 1, 2003. Basis: None. Policy Information: 645/Batch 101 Guarantor Comments: None. Reissuing a Loan Disbursement The Common Manual has been revised to provide an explanation of the circumstances under which a lender may reissue a disbursement. A lender may reissue a loan disbursement if the original disbursement was made according to the school's disbursement schedule, the loan was canceled or not consummated, and the school subsequently determines that the student should have received the disbursement. Affected Sections: 6.2.G Effective Date: July 1, 2003. Basis: None. Policy Information: 646/Batch 101 Guarantor Comments: None. Reissuing a Loan Disbursement A school may request that a lender reissue a loan disbursement for a variety of reasons, such as when a check is lost. The Common Manual policy for the reissue of disbursements has been revised to state that, upon the receipt of a schools request, the lender may reissue a disbursement no later than 120 days after the earlier of the last day of the period of enrollment for which the loan is intended or the students last date of at least half-time enrollment. For proceeds originally disbursed as a late disbursement, the lender must reissue a disbursement no later than 120 days after the date on which the original late disbursement was made. In exceptional cases, the lender may reissue a loan disbursement more than 120 days after the last date of the students eligible enrollment or more than 120 days after the date on which the original late disbursement was made, so that the student will not be harmed by circumstances beyond his or her control. The request for reissue under this exception should come from both the student and the school, and the lender should document the exceptional circumstances. Affected Sections: 6.2.G Effective Date: Disbursements reissued by the lender on or after July 1, 2003, unless implemented earlier by the lender. Lenders may implement these provisions no earlier than November 1, 2002. Basis: None. Coordinates with 34 CFR 668.164(g) and private letter to the Student Loan Marketing Association from the Department, dated July 15, 1994. Policy Information: 647/Batch 102 Guarantor Comments: None. Eligible Lender Definition The Common Manual has been revised to clarify that loans held in trust by a trustee lender are not considered part of the trustee lenders consumer credit function when determining if a lender meets the definition of an eligible lender as prescribed by federal regulations. Affected Sections: 3.1 Effective Date: Retroactive to the implementation of the Common Manual. Basis:
