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Common Manual Updates
Note: Current Common Manual updates and an integrated version of the Common Manual are available on TG Online under Schools and Lenders. By posting Common Manual updates and the integrated version of the Common Manual online, TG's customers can access new policies shortly after the Common Manual Governing Board approves them.
If you want to be notified each time updates and a revised integrated version of the Common Manual are posted online, you can join TG's electronic news service, TG NetWorks. To join, go to TG Online at www.tgslc.org, select "Subscribe," and complete the online form.
Backdating Exception for In-School Deferments
The Common Manual has been revised to clarify that in-school deferments are not bound to the six-month backdating rule that applies to other types of deferment. The lender must grant an in-school deferment for each eligible period of enrollment and may bill the Department for interest benefits on a subsidized Stafford loan, regardless of the date enrollment began. This change reflects Final Rules published in the Federal Register on October 29, 1999. Lenders may implement this provision earlier than the regulatory effective date to maximize the benefit to FFELP borrowers.
- Affected Sections: 7.9.A., 7.10.A., A.1.B.
- Effective Date: In-school deferments granted on or after July 1, 2000, unless implemented earlier by the lender
- Policy Information: Reference #379
- Guarantor Comments: None
Unemployment Benefits Documentation Acceptable for Unemployment Deferment
The Common Manual has been revised to incorporate an unemployment deferment provision of Final Rules published in the Federal Register dated November 1, 1999. A lender may grant an unemployment deferment to a borrower who requests an unemployment deferment and provides to the lender evidence of the borrower's eligibility to receive unemployment benefits. In this case, the borrower need not provide the lender with the common deferment form or other additional information or documentation.
- Affected Sections: 7.10.E.
- Effective Date: Unemployment deferments granted on or after July 1, 2000, unless implemented earlier by the lender
- Policy Information: Reference #380
- Guarantor Comments: None
Endorser Due Diligence
The Common Manual has been revised to incorporate endorser due diligence provisions of Final Rules published in the Federal Register on October 29, 1999. Under these provisions, the lender must complete endorser due diligence requirements before filing a default claim. Prior Common Manual policy required the lender to complete endorser due diligence during the delinquency period of the loan.
- Affected Sections: 8.1.E., and CCI8.1.E.
- Effective Date: Default claims for which the first day of delinquency on the oldest outstanding due date is on or after July 1, 2000, unless implemented earlier by the guarantor
- Policy Information: Proposal #381
- Guarantor Comments: None
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