Federal Updates

New Disability Discharge Form Approved
ED recently published Dear Partner Letter GEN-02-04 announcing approval of the new form Loan Discharge Application: Total and Permanent Disability. The new form implements changes, effective July 1, 2002, to the total and permanent disability discharge process.

TG to Participate in National Default Prevention Day
On August 1, 2002, ED, in partnership with the student loan community, will host its annual National Default Prevention Day. The event promises a full agenda of valuable information centered on the goal of keeping borrowers out of default.

Interest Reporting Clarification
In the June 4, 2002, issue of Shoptalk Online, in the article titled "Final Interest Reporting Rules Issued," TG stated that the requirement for institutions to report origination fees and capitalized interest will take effect January 1, 2005, for interest payments received beginning January 1, 2004.
 
The article should have specified that the reporting requirements will take effect January 1, 2005, only for interest payments received on loans made on or after January 1, 2004. Institutions will not be required to report such payments for any loans made before January 1, 2004. TG regrets any confusion this may have caused.

Trends and Issues

Child Care Provider Loan Forgiveness Program Q&A
The following questions and answers help to clarify some details relating to the Child Care Provider Loan Forgiveness Program.

Common Manual

Department of Education Clarification on Implementation of Total and Permanent Disability Discharge Requirements
In May 2002, the Department of Education (the Department) issued Dear Colleague Letter GEN-02-03 which provides clarification regarding the implementation of the total and permanent disability discharge regulations that are effective July 1, 2002. The guidance from the Department modifies the applicable effective date and triggering event of these requirements by specifying that the new regulations are generally based upon the lender's determination of the borrower's eligibility for discharge, rather than the date the lender receives a borrower's completed request.

Quick Links

• New Total and Permanent Disability Form
• "Changes to Effective Date/Trigger Events" Matrix

This, That, and the Other...

A random sampling of admissions directors at U.S. colleges and universities were asked to respond to a recent survey regarding admissions trends from the National Association for College Admission Counseling (NACAC). The results show some interesting trends, including the following:

• A reported increase in the number of freshman applications from 81% of the responding institutions
• An increase in the number of requests for financial aid from 66% of the respondents
• Increased concern about cost and/or financial aid from parents and students
• An increase in the number of in-state applications
• A reported decrease in the number of international applications from some responding institutions

The snapshot attributes, at least in part, some of the trends to the September 11 terrorist attacks and the sagging economy.

The NACAC "2002 Admission Snapshot" was distributed to 250 directors of admission in early May 2002. It will be followed by the more comprehensive 2002 NACAC Admission Trends Survey, scheduled for release next fall.

Take a look at Adventures In Education, TG's Public Awareness website.