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Federal Updates
Record Low Interest Rates Effective July 1, 2002
With the numerous interest rate cuts that have been made by Federal Reserve chairman Alan Greenspan this year, the FFELP industry has eagerly anticipated how these cuts would translate in the determination of the July 1, 2002, Stafford and PLUS loan interest rates. The wait is over, and the rates are the lowest they have ever been in the history of the FFELP.
Final Interest Reporting Rules Issued
The Internal Revenue Service (IRS) recently released the long-awaited final rules on the reporting of qualified education loan interest payments. The rules, which reflect changes in tax law made by the Taxpayer Relief Act of 1997 (TRA) and by subsequent modifications of the TRA, provide guidance to entities that receive interest payments on qualified education loans.
ED Releases Disability Discharge Procedures
On July 1, 2002, the procedures for processing a total and permanent disability discharge will change for the Title IV student loan programs.
TG Updates
Lender Fact Sheets Now Offer Information on Special Services
TG has improved its online Lender Fact Sheets. The updated Lender Fact Sheets include information regarding special services lenders may offer, including a reduced origination fee, private loans, and e-signature. Lenders are encouraged to review their current information and submit any applicable revisions by completing the online Contact Information form.
TG Summer Training in the Sunshine State
TG has scheduled two summer financial aid training sessions in Florida during the month of June.
Edufacts™—May 2002
Eighty-four percent of the nation's adults age 25 and over—a record number—have at least a high school diploma. However, in 2000, only 16.1 percent earned a bachelor's degree, and less than 10 percent continued to earn a graduate or professional degree after high school.
Click Me In
There's still time for you to gain valuable default prevention information during the next several weeks. TG is in the middle of its series of workshops titled "Practical Strategies for Effective Default Aversion."
Trends and Issues
MYF Schedules Financial Aid and Career Planning Chat
Students and parents looking for answers to questions about planning a career or paying for education should plan to participate in a special chat event next week. "Summer Financial Aid Questions and Career Planning," sponsored by Mapping Your Future, is scheduled for June 13, 2002.
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