Federal Updates

ED issues DCL with details on ECASLA
ED issued Dear Colleague Letter (DCL) GEN-08-08/FP-08-07, providing guidance on the provisions of the Ensuring Continued Access to Student Loans Act of 2008 (ECASLA).

ED releases draft proposed regulations for loan provisions
With its release of a draft version of the notice of proposed rulemaking (NPRM) for loan issues, ED has taken one of the final steps in a negotiated rulemaking (Neg Reg) process that began last October.

TEACH grant final rules
As noted last week, ED released a draft version of the final rules for the Teacher Education Assistance for College and Higher Education (TEACH) Grant program (see Shoptalk Online edition 459). Yesterday, ED published the official version of the final rules, which are effective on July 1, 2008.

NSLDS Newsletter #18 available
On June 13, ED released NSLDS Newsletter #18, which discusses the rules and responsibilities of schools and school servicers, their CEO/President, Primary Destination Point Administrator (PDPA), and individual users under which National Student Loan Data System (NSLDS) online access is granted.

TG Updates

Boost your regulatory IQ with TG's training sessions at the NASFAA Annual Conference
Looking for an effective yet 'painless' way to learn some of the latest federal regulatory changes? Try some participatory training. TG offers two opportunities with sessions at this year's NASFAA Annual Conference.

TG's Carmen Dominguez focuses full-time on the needs of corporate schools
Distance education provides a unique learning environment for students. It poses a different administrative experience for financial aid offices. Carmen Dominguez finds both aspects of the medium fascinating.

Trends and Issues

Three ways to help borrowers and lower your default rate
A low cohort default rate (CDR) is good for the federal student loan program, not to mention schools, lenders, and taxpayers. You still have an opportunity during the last quarter of FY 2007 to positively affect your institution's CDR. With a changing economy, many borrowers may find themselves behind on all types of accounts, including student loans. Some of them may not know what is available to help with student loan payments. As a school, you can offer some aid.

Question of the week
Is an incarcerated student eligible for an economic hardship deferment?

Tech Report

New TG notification service for customers available
TG offers simplicity and convenience with an online communication service for customers called TG Message Central. The service connects schools and lenders with news about TG. Subscribers will receive regular notifications about software enhancements, processing schedule announcements, or other TG-related items — all just by opening their e-mail.

Legislative Update

The reauthorization of the Higher Education Act (HEA) — H.R. 4137 — remains in conference committee. House and Senate sponsors are working to adjust the differences between the versions passed by each chamber.

Both the House and Senate must pass the bill and the President must sign it by June 30, which is the expiration date for the latest extension of the HEA.

In the event this does not happen, congressional leadership must extend the Act again for a period of time. With the congressional schedule as crowded as it is and time running out, the next extension may continue beyond the November 11 general election; it may even continue into 2009 for the 111th Congress to take up.

Learn more by reading the full Legislative Report on TG Online at www.tgslc.org/lege_report/2008/lr_080619.cfm.

This, That, and the Other...

ED's Federal Student Aid (FSA) offers a concise history of federal student aid in its "FSA COACH." The FSA COACH is an online tutorial that looks closely at the school requirements for administering postsecondary federal student aid (FSA) programs authorized under Title IV of the Higher Education Act of 1965, as amended.

The FSA history includes a brief timeline of significant events in higher education, including the creation of the College Work-Study (CWS) Program. In 1964, President Lyndon Johnson signed the Economic Opportunity Act, which created CWS. The president believed the program's part-time employment opportunities could be a useful support to students while they pursued their degree. Certainly, education, and in particular higher education, was a cornerstone of the president's Great Society policy. The next year, Congress ratified the Johnson-sponsored Higher Education Act, which authorized most federal student financial aid programs.

The complete FSA timeline can be found online at www.ed.gov/offices/OSFAP/fsacoach/lesson1_2/1_2_14.html#.