Updated information available pertaining to Hurricane Katrina
Over the last few days, there have been a couple of developments pertaining to Hurricane Katrina and its impact on the administration of federal student aid.
ED releases FY 2003 cohort default rates
On September 12, ED released the official cohort default rates for FY 2003. A domestic school that is enrolled in the electronic cohort default rate (eCDR) process will receive its eCDR through the Student Aid Internet Gateway (SAIG) destination point designated by the school. A domestic school not enrolled in eCDR will not receive notification packages from ED but may download its cohort default rate and accompanying Loan Record Detail Report at www.nsldsfap.ed.gov.
Total and permanent disability claim issues resolved
Representatives of the FFELP industry and ED recently resolved several issues regarding the process of assigning loans to ED's Conditional Disability Discharge Unit in accordance with the conditional discharge process required under total and permanent disability discharge regulations. The resolution of two of the issues affects how a lender or servicer determines if a Loan Discharge Application: Total and Permanent Disability form is acceptable for filing a claim with TG.
Closed school corner
The Department of Education announces three new closures.
TG requests DAAR cancellation notification
Following the devastation of Hurricane Katrina, the student lending community has risen to the occasion by helping the storm victims who have student loan obligations. Many lenders and servicers are taking the initiative to suspend activity on affected borrowers' accounts by applying an administrative forbearance of up to 90 days. These efforts allow hurricane survivors the opportunity to focus on restoring their lives without the worry of their student loan obligation. In situations like this, and in other situations in which a lender or servicer provides a borrower a benefit that subsequently brings a delinquent account current, TG asks the lending community to notify TG of the cancellation of the default aversion assistance request (DAAR).
Question of the week
A school receives scholarship funds for a student after all the student's FFELP loan disbursements have been delivered, creating an overaward. Must the school return some of the loan funds in order to resolve the overaward?
Trends and Issues
Provide your comments on Common Record: CommonLine
The National Council of Higher Education Loan Programs (NCHELP) Electronic Standards Committee (ESC) has proposed "Common Record: CommonLine (CRC)" as an approved and recognized FFELP industry electronic standard. Subsequently, the Postsecondary Electronic Standards Council (PESC) is calling for community comment on the standard and welcomes public input.
TG co-sponsors Nursing entrance counseling through Mapping Your Future
Mapping Your Future now offers Federal Nursing Student Loan entrance counseling as a part of its Online Student Loan Counseling (OSLC).
Common Manual Updates
Information on recent updates to the Common Manual.
The September 9 issue of TG's Legislative Report includes updates on the final weeks of the first session of the 109th Congress — HEA Reauthorization; Health and Human Services, Labor, Education; FY 2006 Budget Reconciliation; and Appropriations. Keep up with the latest developments by reading the full report on TG Online at www.tgslc.org/lege_report/index.cfm.