Common Manual Interim Policy Updates

    As you are aware, 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 2003.

    Attached are interim updates to the Common Manual which address policy revisions approved on September 19, 2002.  Pay particular attention to the effective dates for these interim policy updates.

     The Integrated Common Manual, which is the online version of your paper Common Manual, includes these updates.  The Integrated Common Manual is available at www.uheaa.org under the links News for Financial Aid Administrators or Links to Financial Aid Sites.

    Any questions related to the attached Common Manual interim policy updates should be directed to the UHEAA Policy and Training Department at (801) 321-7166 or by e-mail at mjohnson@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  2003.  However, these changes are effective before the next update is scheduled to be delivered.
 
 

Assignment of an Original Promissory Note to a School
The Common Manual has been updated to state that the school may request that the lender assign the original or a true and exact copy of the promissory note to the school in those cases where a school repays the entire loan amount for an ineligible borrower.  This change recognizes the fact that the lender may have a true and exact copy of the promissory note rather than the original promissory note.  Revised policy also refers the reader to loan record retention requirements in subsection 3.4.A for any loan assigned to a school and any remaining loans held by the lender that were originated under the same Master Promissory Note (MPN).
 

Affected Sections:	6.3.G  Return of Loan Proceeds
Effective Date:	For all loans made using a Master Promissory Note (MPN) for any period of enrollment beginning on or after July 1, 2000, and for any loan certified on or after July 1, 2000, regardless of the loan period begin date.
Basis:	HEA 432(m)(1)(C); §682.102(a)-as updated in the dated November 1, 1999.

 

Financial Aid Transcripts for Transfer Students
The Common Manual has been revised to reflect that schools are required to respond to a request for a paper financial aid transcript (FAT) to report assistance received through the Department of Health and Human Services (HHS).  Even though schools have always been required to provide FATs for HHS assistance, the manual did not reflect this requirement.
 

Affected Sections:	5.2.E  Financial Aid History and Prior Overpayment, Default, Discharge, or Write-Off
Effective Date:	Provisions regarding the Transfer Monitoring Process are effective for Stafford and PLUS loan funds delivered by the school on or after July 1, 2001. Provisions requiring schools to continue providing paper financial aid transcripts for student aid programs administered by the Department of Health and Human Services (HHS) are effective retroactive to the implementation of the Common Manual.
Basis:	DPL GEN-01-09, published July 2001.

 

Stafford Application and Promissory Note
The Common Manual has been updated to delete references to the common Stafford application and promissory note, as this form is obsolete.
 

Affected Sections:	6.1.B Guarantee of the Loan, 6.1.H Adjusting the Guaranteed Loan Amount
Effective Date:	Stafford loans certified by the school for any period of enrollment beginning on or after July 1, 2000; and for any loan certified on or after July 1, 2000, regardless of the loan period begin date.
Basis:	HEA 432(m)(1)(c); §682.102(a)-as updated in the Federal Register dated November 1, 1999.