Common Manual

Common Manual updates

On December 18, 2008, guarantor representatives who serve on the Common Manual Governing Board approved several changes to the Common Manual. Details on these changes and a newly updated Integrated Common Manual incorporating the changes are available online at www.tgslc.org/policy/integrated_online_manual.cfm.

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. These changes will also be incorporated into the Integrated Common Manual. The Integrated Common Manual is available on several guarantor websites, and it is also available on Common Manual's Web site at www.commonmanual.org. Please carefully note the effective date of each policy change.

Economic Hardship Deferment Eligibility
The Common Manual has been revised to clarify that non-taxable income such as child support, life insurance proceeds, and gifts and bequests that are not included in the computation of the adjusted gross income (AGI) should not to be treated as income for purposes of determining eligibility for an economic hardship deferment.

Notification of Check Availability
The Common Manual has been revised to comply with the regulatory changes published in the Federal Register dated November 1, 2007, that relate to delivering loan funds to a borrower when a student does not pick up a check issued by a school. Revised language provides that if the student does not pick up the check within 21 days of the school's notice that the check is available, the school must immediately mail the check to the borrower, initiate an electronic funds transfer (EFT) of those funds to the borrower's bank account, or return the funds to the lender.

Total and Permanent Disability
The Common Manual currently states that a borrower must submit the total and permanent disability certification to the lender within 90 days of the date that the physician completed and certified the discharge application. If the lender receives the discharge application after this 90-day time frame, a borrower must have the physician complete a new application and the borrower must submit the application to the lender within 90 days of the physician's certification of the new discharge application.

The Manual is being revised to state if the borrower submits the discharge application after the 90-day time frame, the borrower must have the physician complete a new application and must submit the new application to the lender within 90 days of the physician's new certification.

Special Allowance and Interest Rate Reporting
Appendix A of the Manual has been updated to incorporate a revised version of Figure A-5, LaRS Special Allowance and Interest Rate Reporting for FFELP Loans, provided by the NCHELP Program Regulations Committee.

Title IV Program Definitions
The Common Manual has been revised to include separate glossary definitions of the following federal student aid programs that are referenced in existing Manual text:

• Federal Perkins Loan: A low-interest, long-term loan intended for undergraduate or graduate and professional students with financial need. The Federal Perkins Loan Program is one of the campus-based programs that are administered by a school's financial aid office. For more information, see the FSA Handbook.
• Federal Supplemental Educational Opportunity Grant (FSEOG): A grant intended for undergraduate students with exceptional financial need. The FSEOG is one of the campus-based programs that are administered by a school's financial aid office. For more information, see the FSA Handbook.
• Federal Work-Study (FWS): An employment program intended for undergraduate or graduate and professional students with financial need that allows students to work part time to help pay for their educational costs. The FWS program is one of the campus-based programs administered by a school's financial aid office. For more information, see the FSA Handbook.

Simplified Deferment Processing
The Manual has been revised to clarify that when a lender is granting a deferment using the simplified deferment processing method, the lender may base the deferment on information from an authoritative electronic database maintained or authorized by the Secretary that supports eligibility for the deferment for the same reason and same time period.

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