Common Manual Interim Policy Updates

    The Common Manual Governing Board periodically approves modifications to the Common Manual.  Recently, several policies were approved to modify the Common Manual.  These changes will be incorporated into the Common Manual when the next annual update is published in July 2002.

    Attached are interim updates to the Common Manual which address policy revisions approved on October 18, 2001.  Pay particular attention to the effective dates for these interim policy updates.

    Any questions related to the attached Common Manual corrections or interim policy updates should be directed to the UHEAA Policy and Training Department at (801) 321-7166 or by e-mail at cjudd@utahsbr.edu.
 

Attachment

The nation's guarantors provide the following summaries to inform schools, lenders, and servicers of the latest Common Manual policy changes.  These changes will appear in the manual's next annual update in 2002.  However, these changes are effective before the next update is scheduled to be delivered.
 

U.S. Department of Education Publications
The Common Manual has been updated to remove references to the Draft Cohort Default Rate Guide and the Official Cohort Default Rate Guide and replace them with a reference to the Cohort Default Rate Guide, which replaced both of those publications.  These references were previously updated in chapter 10, which provides a more detailed outline of the cohort default rate process.
 

Affected Sections:	2.3.B., 10.3
Effective Date:	Cohort default rates calculated on or after July 1, 2001
Basis:	Final Rules published in Part VII of the Federal Register, pages 65631-65651, dated November 1, 2000; §668.192 through §668.198.
Policy Information:	Reference 538
Guarantor Comments:	None.

 

Cost of Attendance
The Common Manual has been revised to clarify that a student's financial aid package, including loans, must not exceed the student's cost of attendance, as opposed to the student's need.
 

Affected Sections:	4.2.A., 5.3, 5.8.A., appendix G
Effective Date:	Retroactive to the implementation of the Common Manual.
Basis:	§682.204(k); §682.603(d).
Policy Information:	Reference 539
Guarantor Comments:	None.

 

Satisfactory Academic Progress (SAP)
The Common Manual has been updated to clarify that the 150% rule for program completion is based on the published program length, not the completion time normally allotted for the program.  In addition, this requirement applies only to undergraduate programs.
 

Affected Sections:	6.3.A., appendix G
Effective Date:	Retroactive to the implementation of the Common Manual.
Basis:	§668.16(e)(2)(ii)(A).
Policy Information:	Reference 540
Guarantor Comments:	None.

 

Borrower Authorization for Release of EFT/Master Check Disbursements
The Common Manual has been updated to eliminate language referencing Stafford loans made using a common loan application and promissory note because all Stafford loans are now made using a Master Promissory Note (MPN).  In addition, the exception for students enrolled in study-abroad programs or eligible foreign schools to provide a power of attorney for an individual not affiliated with the school to sign the authorization for release of electronic funds transfer (EFT) or master check disbursements has been eliminated because this authorization is included on the MPN and does not pertain to PLUS loans.
 

Affected Sections:	6.3.C.
Effective Date:	Retroactive to the implementation of the Master Promissory Note (MPN).
Basis:	§682.207(b)(1)(v)(B)(3); §682.207(b)(1)(v)(D).
Policy Information:	Reference 541
Guarantor Comments:	None.

 

SSCR Responsibility
The Common Manual has been updated to reflect that the responsibility of the distribution and collection of Student Status Confirmation Reports (SSCRs) no longer lies with the guarantor once the school receives a letter from the Department confirming the school's successful SSCR testing with the National Student Loan Data System (NSLDS).  Revised policy also states that the Department, via the NSLDS, is responsible for ensuring that SSCR information is distributed to the appropriate guarantor and, in some cases, lenders.
 

Affected Sections:	7.3
Effective Date:	The date the school receives a letter from the Department indicating that the school has successfully tested its Student Status Confirmation Report (SSCR) process through the National Student Loan Data System (NSLDS).
Basis:	Dear Colleague Letter GEN-96-17.
Policy Information:	Reference 542
Guarantor Comments:	None.

 

Timely Filing Penalties for Death Claims
The Common Manual has been revised to more accurately reflect that a death claim that is not filed within 60 days of receiving an original or certified copy of the death certificate will be subject to an interest penalty, and the lender will be required to repay all interest benefits and special allowance payments for amounts received or otherwise payable after the expiration of the 60-day filing deadline. Previously, the manual stated that a death claim purchased after the 60th day would be subject to an interest penalty. In addition, a reference has been added to refer readers to subsections 8.8.E. and CCI8.2.B., Penalties for Timely Claim Filing Violations.
 

Affected Sections:	8.2.B., CCI8.2.B.
Effective Date:	Retroactive to the implementation of the Common Manual.
Basis:	§682.402(g)(2)(i).
Policy Information:	Reference 543
Guarantor Comments:	None.

 

NSLDS Data Included in Program Reviews
The Common Manual has been updated to add National Student Loan Data System (NSLDS) rosters, reporting, and procedures to the list of items that a guarantor may include in a school program review, and NSLDS Lender Manifest, error reports, and procedures to the list of items a guarantor may include in a lender or servicer program review.  It also adds improper NSLDS reporting and procedures to the list of common program review findings.
 

Affected Sections:	11.3.A., 11.3.B.,11.3.C.
Effective Date:	Effective retroactive to the implementation of National Student Loan Data System (NSLDS) reporting.
Basis:	DCL GEN-96-13; DCL GEN-96-17; DCL GEN-97-11; Student Status Confirmation Report (SSCR) User's Guide; U.S. Department of Education Program Review Guides.
Policy Information:	Reference 545
Guarantor Comments:	None.