Eligibility to Participate in the Missouri Student Loan Program

PURPOSE: This rule is contained in the Common Manual, Unified Student Loan Policy, which is produced collectively by the Missouri Student Loan Program and all other guaranty agencies that administer the guaranteed student loan program. It establishes the policies for implementation and operation of the loan program for borrowers, schools, lenders, and third-party servicers. PUBLISHER’S NOTE: The secretary of state has determined that the publication of the entire text of the material which is incorporated by reference as a portion of this rule would be unduly cumbersome or expensive. Therefore, the material which is so incorporated is on file with the agency who filed this rule, and with the Office of the Secretary of State. Any interested person may view this material at either agency’s headquarters or the same will be made available at the Office of the Secretary of State at a cost not to exceed actual cost of copy reproduction. The entire text of the rule is printed here. This note refers only to the incorporated by reference material. (1) The Common Manual, Unified Student Loan Policy establishes the guidelines and specifies the federal policies by which the Missouri Student Loan Program administers the guaranteed student loan program, including Stafford Loans, Parent Loans for Undergraduate Students (PLUS), Consolidated Loans, and Supplemental Loans for Students (SLS). These national policies standardize administrative processes and enhance default prevention procedures. (2) The manual includes policies to be followed by schools, lenders and third-party servicers that participate in the guaranteed student loan program. (A) The manual contains general program information relevant to student loan borrowers, such as available loan types, eligibility criteria, borrowing limits, repayment options, interest rates, disbursement methods, and default activities. (B) For schools, the manual outlines all applicable federal policies, including topics such as institutional eligibility criteria, recordkeeping and verification requirements, compliance reviews, entrance and exit counseling requirements, loan certification, disbursement and delivery methods, cohort default rates, and limitation, suspension and termination. (C) For lenders, the manual also outlines all applicable federal policies, including topics such as eligibility criteria, audits, disbursement and delivery methods, loan servicing, due diligence requirements, claim filing, compliance reviews, and limitation, suspension, and termination. (D) The manual also contains applicable policies that thirdparty servicers must adhere to in administering the guaranteed student loan program on behalf of schools and lenders. (3) The manual includes the standard forms necessary to the administration of the guaranteed student loan program. (4) This rule incorporates by reference the full text of the material titled Common Manual, Unified Student Loan Policy in order to ensure consistent administrative processes for all guaranteed student loan programs and enhance default prevention procedures. AUTHORITY: sections 173.095, 173.100, 173.105, 173.110, 173.115 and 173.120–173.186, RSMo 2000.* Original rule filed June 8, 1979, effective Nov. 11, 1979. Rescinded and readopted: Filed Oct. 11, 1983, effective Jan. 13, 1984. Amended: Filed Oct. 1, 1985, effective Jan. 12, 1986. Amended: Filed July 1, 1988, effective Oct. 1, 1988. Amended: Filed Dec. 13, 1991, effective April 9, 1992. Rescinded and readopted: Filed Nov. 26, 1996, effective June 30, 1997. Amended: Filed Oct. 27, 2000, effective April 30, 2001. Amended: Filed Nov. 1, 2001, effective April 30, 2002. *Original authority: 173.095, RSMo 1967, amended 1978; 173.100, RSMo 1967, amended 1978, 1981, 1988, 1994; 173.105, RSMo 1978, amended 1981, 1993, 1994; 173.110, RSMo 1967, amended 1978, 1981, 1994; 173.115, RSMo 1988; 173.120, RSMo 1967, amended 1978, 1982; 173.130, RSMo 1967, amended 1978; 173.141, RSMo 1981; 173.150, RSMo 1967, amended 1978, 1994; 173.160, RSMo 1967, amended 1978, 1981, 1994; 173.170, RSMo 1967, amended 1978, 1981, 1994; 173.180, RSMo 1967, amended 1978; and 173.186, RSMo 1986.