Federal Updates

Moving on up: Interest rates increase for first time in four years
ED has announced that the variable interest rates on Stafford and PLUS loans will be going up nearly two percentage points following a four-year decline that ended with rates at their lowest levels in 35 years.

Reauthorization watch
Last week, TG updated its Higher Education Act reauthorization page on TG Online with information on and links for several recent developments.

TG Updates

TG implements Code of Business Conduct, Ethics Hotline
TG recognizes the importance of conducting business in an ethical manner. Too often, unethical behavior has caused corporate scandals that have made news headlines and cost their employees and shareholders billions of dollars. Such unfortunate events also have destroyed positive reputations that have taken companies years to build.

Texas Legislature reaffirms TG's mission, benefit to higher education
The Texas Legislature extended TG's charter of operations for another 12 years, the maximum renewable term.

Nominations open for Commitment to Student Success Awards
The Council for the Management of Educational Finance and TG invite schools with demonstrated success in student loan debt management and default aversion to apply for the 2005 Commitment to Student Success Awards.

Legislative Update

The May 31 issue of TG's Legislative Report includes an update on legislation affecting higher education and student financial aid that passed the 79th Texas Legislature, which adjourned on May 30. Keep up with the latest developments by reading the full report on TG Online at www.tgslc.org/lege_report/index.cfm.

This, That, and the Other...

This year marks the 25th anniversary of the Pell grant. Although the grant has been in existence since 1972, when it was called the Basic Educational Opportunity Grant (BEOG) Program, it was renamed the Pell grant in 1980 in honor of U.S. Sen. Claiborne Pell, who sponsored the program in Congress.

In 1979-80, the maximum Pell grant was $1,800, and, according to the American Council on Education's report 2003 Status Report on the Pell Grant Program (www.acenet.edu/bookstore/
pdf/2003_pell_grant.pdf), that amount covered 99 percent of the average price of tuition, fees, and on-campus room and board at a public, 2-year college, 77 percent of these prices at a public, 4-year institution, and 36 percent of these prices at a private, not-for-profit college or university.

Today, the maximum Pell grant is $4,050. What percentage of costs does today's grant cover at your school?