Federal Updates

Fireworks fly as Congress takes action on reconciliation bill
Just before the new year, early fireworks flew as the House and the Senate both approved the conference committee version of the budget reconciliation bill S. 1932, the Deficit Reduction Act of 2005.

New HEA extension also extends increased teacher loan forgiveness benefits
On December 30, the president signed H.R. 4525, the Second Higher Education Extension Act of 2005. Previous legislation (H.R. 3784) had temporarily extended the Higher Education Act of 1965 (HEA) in its current state through December 31, 2005; this new legislation further extends the HEA through March 31, 2006, allowing Congress additional time to come to agreement on reauthorization issues.

Managing military mobilization
As our military personnel begin to return from their assignments and re-enter their civilian and student lives, they may face unexpected obstacles if they did not advise the appropriate parties of their circumstances.

Revisions to Claim Form clarify lender reporting requirements, skip tracing codes
As reported in Shoptalk Online Edition 335, the common Claim Form has recently been updated. The Default Aversion and Claims Standardization (DACS) subcommittee of the NCHELP Program Operations Committee revised the Claim Form because of changes to Internal Revenue Service (IRS) regulations as a result of the passage of the Taxpayer Relief Act (TRA).

Variable interest rate for calendar year 2006
ED has announced the PLUS/SLS variable interest rate for 2006 for loans using the "91-day Treasury Bill" interest rate calculation method.

TG Updates

Online registration now available for TG lender and servicer training
TG's 2006 Annual Lender and Servicer Training will be held on Thursday, January 26, 2006, in Round Rock, Texas.

Ann Derrick joins TG's lender partnership team
As a lender partnership consultant, Ann Derrick will provide enhanced customer service to TG's lending partners as part of TG's relationship management and consulting team.

TG to present free FAFSA program: The FAFSA Made Easy
The FAFSA is the single most important document needed to receive federal financial aid, but for many students and families, completing the form can be confusing and frustrating. To help your students and their parents complete the FAFSA accurately and in a timely manner, TG will broadcast its 11th annual FAFSA program on Thursday, February 2, 2006, from 7 p.m. to 8 p.m. CST.

Material from TG's teleconference "Things that make you go hmmm…" available on TG Online
On December 15, TG's free telephone conference "Things that make you go hmmm…" offered guidance and clarification on ED's Dear Colleague Letter (DCL) GEN-05-16 as well as other policy issues which teleconference participants supplied ahead of time.

TG selects participants for Financial Aid Leadership Symposium
TG is pleased to announce that a full cohort of 16 participants has been selected to attend TG's Financial Aid Leadership Symposium, which will be held February 6 - 10, 2006, at the TG Campus in Round Rock, Texas.

Question of the week
Must a school deliver the multiple disbursements of a Stafford loan in equal amounts?

Legislative Update

The December 21, 2005, issue of TG's Legislative Report includes updates on S.1932, the Deficit Reduction Act of 2005, and H.R. 4525, which extends for a second time the Higher Education Act through March 31, 2006. 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...

According to statistics from the U.S. Census Bureau, adults with higher levels of education are more likely to vote than those who have less education.

In the 2004 presidential election, 76 percent of U.S. citizens who were college graduates between the ages of 25 and 44 reported voting, compared to 49 percent of high school graduates. Among citizens between the ages of 45 and 64, 83 percent of college graduates and 63 percent of high school graduates reported voting. Only 25 percent of high school graduates between the ages of 18 and 24 voted, compared to 67 percent of those with a bachelor's degree or higher.

Between 1980 and 2004, the voting rate for high school graduates declined more than the voting rate for those with higher levels of education.

For more on these statistics and others that show the societal benefits of postsecondary education, view the College Board's "Education Pays Update 2005" at www.collegeboard.com/
prod_downloads/press/
cost05/education_pays
_05.pdf.