Federal Updates

ED approves new segment of health profession students for additional unsubsidized Stafford loan limits

ED has added a new set of programs to the list of programs eligible to award additional unsubsidized Stafford loan limits available to health profession students. Per Dear Colleague Letter (DCL) GEN-05-09, starting May 1, 2005, students enrolled in naturopathic programs of study are eligible for the additional annual and increased aggregate Stafford loan limits.

Background
Schools offering eligible health profession programs may award the additional unsubsidized Stafford loan amounts. The other approved health profession programs (not including the just-approved naturopathic programs) are listed in the Common Manual subsection 6.11.C.

The increased unsubsidized Stafford loan amounts that a student in one of these eligible health profession programs may receive are in addition to the base Stafford annual loan limits. An otherwise eligible student in a naturopathic program of study that leads to a Doctor of Naturopathic Medicine (N.M.D.) degree or a Doctor of Naturopathy (N.D.) degree is eligible for an additional $20,000 in unsubsidized Stafford loan funds if the student's program has an academic year of nine months in length, and $26,667 if the student's program has an academic year of 12 months in length. The aggregate limit for these students is $189,125, of which no more than $65,500 can be in subsidized Stafford loans.

By the way
In case you didn't know already, "naturopathy" is defined in the Merriam-Webster Online Dictionary as "a system of treatment of disease that avoids drugs and surgery and emphasizes the use of natural agents (as air, water, and sunshine) and physical means (as manipulation and electrical treatment)."

More information
To access DCL GEN-05-09, visit the Information for Financial Aid Professionals website at http://ifap.ed.gov/dpcletters/GEN0509.html.

To access the 2005 Electronic Common Manual, visit www.tgslc.org/resources/integrated_online_manual.cfm.

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Current special allowance rates: Quarter ending June 30, 2005

The following rates apply for the quarter ending June 30, 2005:

• The average of the bond equivalent rates of the 91-day Treasury bills auctioned during the quarter ending June 30, 2005, is 2.94 percent.
• The average of the bond equivalent rates of the quotes of the three-month commercial paper (financial) rates in effect for each of the days in the quarter ending June 30, 2005, is 3.23 percent.

The FFELP special allowance rates for the most recent quarter are available on TG Online at www.tgslc.org/pdf/SA063005.pdf.

Questions
For questions about special allowance rates, contact TG customer assistance at (800) 845-6267 or send an message to cust.assist@tgslc.org.

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Two more volumes of the 2005-06 FSA Handbook published — one more to go

ED has released Volumes 2 and 6 of the 2005-06 Federal Student Aid Handbook (FSA Handbook). The only volume that has not yet been published for the upcoming award year is Volume 3, Calculating Awards, Packaging, and Originating. The volumes that have been released now include:

• The Application and Verification Guide
• Volume 1, Student Eligibility
• Volume 2, School Eligibility and Operations
• Volume 4, Processing Aid and Managing FSA Funds
• Volume 5, Overawards, Overpayments, and Withdrawal Calculations
• Volume 6, Campus-Based Programs

The current volumes are available on TG Online at www.tgslc.org/resources/fsa_handbook.cfm. When the last volume of the 2005-2006 FSA Handbook is released, TG will provide a single downloadable file encompassing all of the volumes. Watch future editions of Shoptalk Online for details.

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Closed school corner

Following is a list of newly reported school closures and error corrections from the Postsecondary Educational Participants System (PEPS) and from the June 2005 Closed School Monthly Report supplied by the Department of Education:

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