Federal Updates

ED reminds lenders to renew Organizational Participation Agreement
ED posted an announcement to the Federal Student Aid Financial Partners Portal reminding FFELP lenders to renew their Organizational Participation Agreement (OPA) by September 30, 2008.

ED issues reminder of change in lender reviews
In a recent Dear Guaranty Agency Director letter, ED issued a reminder that guarantors must include the review of prohibited inducements in the scope of comprehensive lender reviews required under 34 CFR 682.410(c)(1).

NSLDS Newsletter #17 available
ED released NSLDS Newsletter #17, which discusses NSLDS changes implemented in January 2008 as part of the annual system updates as well as the new NSLDS e-mail notification process.

TG Updates

Southern State Community College's Highland County College Access Network reaches students and families with help of TG grant
The Highland County College Access Network (HighlandCAN!) program provides direct and pre-college outreach services to students, including four college access and success programs for five school districts in Ohio. TG supports the program with a grant from its Public Benefit Grant Program.

Join TG at its summer regional trainings
TG's upcoming regional training offers a great way to learn about the latest regulatory changes. The day-long workshops offer a menu of training opportunities in a variety of areas, including policy and industry trends.

Trends and Issues

Question of the week
Since the November 1, 2007, final rules will limit the use of current-year Title IV funds for payment of minor prior-year charges to no more than $200 after July 1, 2008, what other options does a school have for resolving these situations?

Legislative Update

Congress has extended the Higher Education Act through June 30, 2008, and partially addressed the student loan "liquidity problem" by passing H.R. 5715 — the Ensuring Continued Access to Student Loans Act.

Also, the Federal Reserve Board decided to begin accepting federally-insured student loan securities as collateral through its Term Securities Lending Facility. ED and the FFELP lending community reached a temporary agreement on how ED will implement its temporary role as the FFELP "secondary market of last resort." The program will provide lenders a one-year opportunity to obtain liquidity from ED sufficient to cover costs and originate new FFELP loans. These policy changes will provide immediate, if only temporary, liquidity for the FFELP lending arena.

A related bill is still pending in committee. H.R. 5914 — The Student Loan Access Act — proposes to provide the Treasury Department's Federal Financing Bank the authority to purchase federally-insured student loans, invest in securities backed by federally-insured student loans, and make advances to lenders to originate federally-insured student loans.

Learn more by reading the full Legislative Report on TG Online at www.tgslc.org/lege_report/2008/lr_080605.cfm.

This, That, and the Other...

Not that it's news to financial aid offices, but a recent study confirms the connection between social prosperity and graduate education. The study, conducted by the Council on Graduate Schools' Advisory Committee on Graduate Education and the Public Good, says there is a strong link between a U.S. graduate education and economic and social success.

In their report, Graduation and the Public Good, the committee focuses on how a world-class graduate education system has benefited the U.S. and the world. Surprisingly, the study found that over 70 percent of doctoral degree-holders worked outside of academia — in a range of fields from health and legal services to manufacturing and educational occupations.

Having such a highly educated population has allowed the U.S. to reap the benefits of "increased tax revenues, greater productivity, increased workforce flexibility, decreased reliance on government financial assistance, and improved ability to adapt to, and use, technology."

Some of the other societal benefits described in the report include increased revenue, better health, improved employment, greater civic responsibility, next-generation researchers, and entrepreneurial development.

Read the complete article at http://www.nasfaa.org/publications/2008/rgraduate060608.html.