Federal Updates

Reauthorization: FFELP provisions
H.R. 4137 is extensive and covers many topics outside of Title IV that may impact various entities. This article focuses in more detail on some of the FFELP-related provisions included in the bill.

ED releases new loan purchase program information
Last week, ED provided additional guidance on loan purchase program procedures in a series of Electronic Announcements (E-ANN). E-ANN 13 provides further details on the document submission process for the loan participation purchase program. E-ANN 13 includes the "Table Load Procedures for the Loan Schedule and Custodial Certification."

Closed school corner
The Department of Education announces one new closure.

TG Updates

Council dialogue explores best practices in default prevention for servicers
Recent developments in the FFELP have made it challenging for program participants to keep up with regulatory changes and, at the same time, conduct normal business activities. Recognizing the role that servicers play in default prevention, the Council for the Management of Educational Finance (Council) sought ways to help servicers address challenges in student loan repayment.

Demystifying the credit report: TG's Adventures In Education offers interactive credit report example for students and parents
TG's Adventures In Education (AIE™) provides an interactive credit report "reader" to help students and parents understand the details of a credit report.

Training spotlight: EFT disbursement process — Three Day and Next Day funding timelines
TG recently hosted two product training webinars on the Electronic Funds Transfer (EFT) process. In addition to providing an overview of the various disbursement reports that are available to schools and lenders through AdvanTG Web™ and TG's EFT Web site, the webinars offered a review of the EFT funding cycle timeline.

Trends and Issues

Question of the week
Is a borrower who has had a federal loan or grant overpayment discharged in bankruptcy eligible for additional federal student aid?

This, That, and the Other...

Recently, ED and the Federal Trade Commission (FTC) jointly released a consumer guide to help students and their families navigate the maze of offers they may face when seeking new student loans to pay for higher education. The publication, Student Loans: Avoiding Deceptive Offers, provides advice to help consumers detect and avoid deceptive marketing offers from private companies seeking their student loan business.

The free brochure, available at http://ombudsman.ed.gov/hottopics.html, also provides a comparison of the different benefits and terms for federal and private loans.

ED's press release on the consumer guide can found at www.ed.gov/news/pressreleases/2008/07/07032008.html.