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Federal Updates
Final rules flashback
It seems like it was just yesterday that ED released the 2002 final rules. But now, eight months later, these new federal regulations are officially about to become effective. All of the 2002 final rules must be implemented July 1, 2003. You may have already implemented most of the final rules that pertain to your institution, however, since they could be implemented early on or after the date that they were approved — November 1, 2002.
Supplemental information available for Consolidation loan borrowers
Included in the final regulations issued by ED in the November 1, 2002, Federal Register, are provisions that permit FFELP Consolidation loan borrowers to receive loan discharges that would have been available if their original loans had not been consolidated. To assist lenders in disclosing these new benefits to borrowers, the National Council of Higher Education Loan Programs (NCHELP) has created a Supplemental Information sheet, approved by ED, that explains these discharge provisions. The Supplemental Information sheet is available for download from TG Online.
TG Updates
New default aversion resources to debut at NASFAA
TG will unveil two new default aversion resources for schools at next month's NASFAA Conference. Visitors to the TG booth (#515) will receive the first copies of a colorful new default prevention calendar and a newly updated edition of TG's popular default aversion training model.
Reminder: TG holds consolidation teleconference this week
Loan consolidation has been a hot topic this year. More borrowers than ever are exploring consolidation as a means to lock in record-low interest rates. Now that rates are going even lower in July (see "Interest rates - how low will they go?" in Shoptalk Online Edition 207), we may have even more borrowers considering consolidation. To help you counsel borrowers about this option, TG is holding a teleconference entitled "Maximizing the Consolidation Opportunity" this Thursday, June 26, from 2-3 p.m. CDT.
TG, Council host gathering of student loan servicers
TG and its partner, the Council for the Management of Educational Finance, hosted 32 representatives of student loan servicers and other members of the student financial aid community in Dallas on June 5 for the second Industry Dialogue with Loan Servicers. This year's discussion topic was "Education Loan Servicing in the New Economy," which included an overview of economic indicators and a summary of borrower indebtedness and default/delinquency trends, followed by two roundtable discussions on loan consolidation and alternative loans.
Legislative update
The June 17, 2003, issue of the Legislative Report provides updates on a new federal deficit forecast from the Congressional Budget Office, and the latest developments in the appropriations process in light of limitations from the budget resolution. The report also includes news on Congressman George Miller's call for hearings on, and suspension of, a recent ED rule change that will raise the family contribution for needy postsecondary education students by modifying the formula used to distribute most of the $90 billion in federal student financial aid funds. Read the full report on TG Online at www.tgslc.org/lege_report/index.cfm.
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