Federal Updates

ED provides more information on borrower benefits and the loan purchase program
ED released an Electronic Announcement regarding the impact of FFELP borrower benefit programs on ED's offer to purchase certain FFELP loans.

Reminder: Upcoming federal minimum wage increase
Last year, Congress authorized three annual increases in the federal minimum wage; the second of those increases is quickly approaching. This change may affect some Federal Work-Study (FWS) students. FFELP lenders and servicers should also ensure their readiness to process Economic Hardship Deferment (HRD) and Working Mother Deferment (PLWM) Request forms using the increased minimum wage amount.

A sneak peek at the TEACH Grant final rules
ED released a draft version of the TEACH Grant final rules, with an implementation date of July 1, 2008.

Closed school corner
The Department of Education announces four new closures.

TG Updates

TG modifies systems to accommodate changing lender participation levels
TG is implementing various system changes to help ensure funding for borrowers and to minimize potential complications for schools and lenders.

NASFAA conference watch: TG offers session on automating lender selection process
Preferred lender lists (PLLs) have been subject of recent industry examination and discussion because of regulatory changes and public attention. To help schools understand their options with regard to PLLs, TG offers a special training session at the 2008 NASFAA Annual Conference titled "Automating your lender selection process."

Join TG at symposium on financial literacy counseling
Are you looking for ways to help your students understand financial concepts and money management? TG offers a specially designed symposium featuring two experts on implementing money management programs on college campuses. TG's 2008 Financial Literacy Counseling Symposium will be held on Friday, June 27.

Tech Report

TG updates letter templates for Integrated Default Assistant™
Based on customer feedback, TG has modified the pre-formatted letter templates for its Integrated Default Assistant™ (IDA™) default prevention tool.

Trends and Issues

Question of the week
I know a school cannot refuse to certify a loan if a borrower chooses a lender that is not on the school's preferred lender list, but can a school refuse to certify a loan for a lender that chooses not to work within the school's established electronic processes (e.g., TG Loans By Web™)?

This, That, and the Other...

Colleges are on the forefront of dealing with the problem of growing travel costs. Gas prices have led some community colleges to shift schedules so that classes meet only on four days. Some universities are even switching to a four-day work week — at least for the summer — to allow employees to save on gas. Eastern Kentucky University and LeTourneau University are two such schools that have recently announced plans along these lines.

You can read the notice about this new trend at http://insidehighered.com/news/2008/05/29/qt.