Federal Updates

ED provides additional guidance on new grant programs
Amidst the sweeping changes brought by the Higher Education Reconciliation Act of 2005 (HERA), many policy discussions have focused on changes to the FFELP. However, TG is aware that our school partners have been eagerly awaiting further guidance on the new Academic Competitiveness Grant (which ED is calling the AC Grant) and National SMART Grant, and additional guidance has recently been released. Last week, ED released two Dear Colleague Letters (DCLs), GEN-06-06 and GEN-06-08, with further information about the implementation and administration of these grants.

New FFELP deferment forms approved
Yesterday, ED released Dear Colleague Letter (DCL) FP-06-06, which announced the approval of revised deferment forms and provided guidance on the transition of use of the new forms.

ED releases high-level overview of operational changes due to HERA
On May 5, ED released an Electronic Announcement providing information about ED's plans to "operationally implement the HERA changes that will affect the CPS, COD System, and EDExpress Suite." This announcement is the first in a series of communications; subsequent communications will provide more detailed information.

ED extends prior guidance relating to Gulf Coast hurricanes
On April 28, ED issued Dear Colleague Letter (DCL) GEN-06-07 which summarized and provided for an extension of prior guidance related to hurricanes Katrina and Rita.

TG Updates

How will your school implement Grad PLUS?
Did you attend the TG Conference last month? If so, we hope that you were able to attend the session titled Higher Education Reconciliation Act - TG and You! In that session, some of TG's top policy and product experts explained how the changes in the HERA will impact TG's business processes. One of the most significant issues for our customers is the implementation of the Grad PLUS program and, as TG works to refine our processes, we want to learn how schools are planning to launch this extension of the PLUS Loan Program.

Question of the week
If a student has already completed the FAFSA for the 2006-07 academic year and notifies the school that he or she will be utilizing distributions from a prepaid tuition plan for the upcoming academic year, what should the school do based on changes to the Higher Education Act (HEA) as a result of the recently passed Higher Education Reconciliation Act of 2005 (HERA)?

Trends and Issues

Manning to replace Stroup as assistant secretary for postsecondary education
The Department of Education (ED) announced on Thursday that James Manning will become acting assistant secretary for postsecondary education.

Common Manual

Common Manual Updates
Information on recent updates to the Common Manual.

2006 Common Manual to include HERA updates
The Common Manual Governing Board, comprised of representatives of all FFELP guarantors, have agreed to defer publication of the 2006 version of the Common Manual and ensure that the version includes as many changes as possible that pertain to changes to the Higher Education Act brought about by the passage of the Higher Education Reconciliation Act (HERA) of 2005. The Governing Board projects an October 2006 delivery of the printed and CD versions of the manual.

This, That, and the Other...

It's graduation season, time for college seniors to celebrate good friends and hard work — and the end of those ever-rising tuition payments.

But financial freedom may have to wait a week or two. From cap and gown rentals to printed announcements to inflated hotel prices, pomp and circumstance doesn't come cheap these days, states a May 3 Associated Press article. While the joy of the moment often means families and students happily fork over the money, graduation weekend can wallop the wallet one last time.

It's hard to say how much Americans spend on the full range of graduation expenses, but it's ample. Class rings seem to be rebounding from an unfashionable period, and despite , written announcements are surprisingly resilient, especially in the South.

Caps and gowns are the one expense students generally can't avoid, at least if they want to march in commencement. Ultimately, few parents begrudge money spent on such a happy occasion.

To read the entire article, visit www.cnn.com/2006/EDUCATION/05/03/pricey.graduation.ap/index.html.