November 5, 2009

Show Me the (Additional) Money! Packaging Title IV Aid After a Loan Claim

You prepare a student’s financial aid package, including Title IV grants and loans, but wait – what’s this?  The student has a discharge on a prior loan?  What does this mean?  What do I do?  Can the student get additional Title IV aid?  Will the student be eligible for grants? 

Don’t worry. OGSLP staff is here to answer all of those questions!

The first step is to determine the type of claim.  The easiest way to check this is to use the National Student Loan Data System (NSLDS). Once you’ve determined the claim type, you can assist in restoring eligibility to the student.

Common Discharge Claims

Total and Permanent Disability (TPD)

• Conditional TPD (applications received before July 1, 2010)
  • See Department of Education (ED) Web site for specific information.
  • You may use OGSLP’s Physician Certification form to meet requirements #2 and #3.
  • Once all documentation has been received, OGSLP will guarantee the loan if the borrower is otherwise eligible.
  • If removing the Conditional TPD status puts the loan in default status, the default must be resolved before a new loan can be guaranteed.


• Final TPD
  • Same as Conditional TPD, but the student does not need to acknowledge previously TPD discharged loans; only the Physician’s Certification and signed statement regarding new loans are needed.
  • You may use OGSLP’s Physician Certification form for this requirement.
  • Once all documentation has been received, OGSLP will guarantee the loan.


• Final TPD under Review (applications received after July 1,2010)
  • This will replace the Conditional TPD status.
  • See ED’s Web site for specific information.
  • You may use OGSLP’s Physician Certification form to meet requirements #2 and #3.
  • Once all documentation has been received, OGSLP will guarantee the loan if the borrower is otherwise eligible.
  • If removing the conditional TPD status puts the loan in default status, the default must be resolved before a new loan can be guaranteed.


• Veterans’ Affairs (VA) TPD
  • Same as Final TPD.
  • You may use OGSLP’s Physician Certification form for this requirement.
  • Once all documentation has been received, OGSLP will guarantee the loan.

Death

• Death of Parent (student or second parent wants additional loans)
  • Will need to verify that death claim is on the correct loan.
  • Once verified, OGSLP will guarantee the loan.


• Death of Student (parent wants additional loans for another child or self)
  • Will need to verify that death claim is on the correct loan.
  • Once verified, OGSLP will guarantee the loan.

If you have question about any of these topics, call OGSLP’s Policy, Compliance and Training department at 405.234.4432. We’re here to help!