Federal Updates

ED to use 2003-2004 state tax tables for 2004-2005 EFC calculations
ED recently announced the availability of the Expected Family Contribution (EFC) Formula Worksheets and Tables for the 2004-2005 award year. Usually, the annual publication of these EFC materials is not all that newsworthy — it's just part of the routine of preparing for the next year's FAFSA cycle. What makes this year's posting of EFC materials worth mentioning is that ED recently announced that it will use the 2003-2004 "state and other tax allowances" tables in the 2004-2005 EFC calculations, based on the anticipated direction of the Congress.

Join ED's new national default prevention discussion list
ED recently established a listserv dedicated to default prevention issues. The listserv, which will be run by Rutgers, The State University of New Jersey, is open to all members of the student financial aid community.

Variable interest rate announced for older PLUS and SLS loans with calendar-year adjustments
Due to the wording of some older promissory notes, a limited number of outstanding PLUS and SLS loans are subject to a calendar-year adjustment of the variable interest rate based on the "91-day Treasury Bill" method that existed prior to the enactment of the Higher Education Act Technical Amendments of 1987. Most of the loans with this interest rate provision have likely already been paid in full or refinanced. For any such loans still outstanding, ED recently announced the new variable interest rate for 2004.

Common Manual

New training brief shows how to find information fast
Do you know your way around the monthly Integrated Common Manual? Find out how to locate policy information more quickly and efficiently by reviewing the latest tips and tricks from the Common Manual Policy Committee at www.tgslc.org/resources/cm_training.cfm.

Legislative Update

Two new issues of TG's Legislative Report are now online. Read them to catch up with the latest news on federal and state student aid issues and initiatives.

The December 16 edition tracks the latest developments in FY 2004 appropriations, federal funding levels, the outlook for HEA reauthorization, and student aid legislation pending before Congress. Also included are details on upcoming hearings of the Texas Joint Interim Committee on Higher Education and an update on the Sunset Advisory Commission review of TG.

The December 19 edition recaps the legislative progress of the First Session of the 108th Congress during 2003, and lists the high-profile issues facing the Second Session in 2004. Also included are updates on upcoming studies at the state level.

Read the full reports on TG Online at www.tgslc.org/lege_report/index.cfm.

This, That, and the Other...

Identity theft is one of the fastest growing crimes against consumers, affecting nearly 10 million people and costing victims more than $5 billion in 2003, according to U.S. Secretary of Education Rod Paige. To help students combat identity theft, ED has launched a new website — www.ed.gov/misused.

The site includes comprehensive information for students and families, including tips for protecting their identity and advice on how they can detect identity theft. In addition, the department has a hotline,
1 800-MISUSED, for anyone who suspects student loan fraud.

The new website warns that college students are particularly vulnerable to having their Social Security numbers and driver’s license information stolen. According to ED, credit card offers, dormitory burglaries, inexperience in financial management skills, and even the way many professors post grades make students extremely exposed to identity theft.

ED hopes that its new website and hotline will help students and families take steps to secure their personal information and prevent headaches associated with identity theft.