Federal Updates

ED issues memo to lenders regarding interest reimbursement for certain borrowers affected by recent hurricanes
On June 2, ED released a memorandum to lenders providing additional guidance regarding the treatment of accrued interest for lenders holding unsubsidized Stafford and PLUS loans made to certain borrowers who were impacted by Hurricanes Katrina and Rita.

ED issues guidance on special allowance for certain PLUS loans
On June 5, ED released Dear Colleague Letter (DCL) FP-06-10. This letter provides guidance about the payment of special allowance for certain PLUS loans affected by the Higher Education Reconciliation Act (HERA).

ED issues DCL on interest rate options for Consolidation loan processing
On May 29, ED released Dear Colleague Letter (DCL) FP-06-09. This letter provides options for lenders to use when determining Consolidation loan interest rates as of July 1, 2006 and shortly thereafter.

Closed school corner
A list of newly reported school closures and error corrections from the Postsecondary Educational Participants System (PEPS) and from the May 2006 Closed School Monthly Report supplied by the Department of Education

TG Updates

TG publishes HERA reference sheets for customers
To assist customers with understanding, communicating, and implementing changes required by the recent passage of the Higher Education Reconciliation Act of 2005 (HERA), TG has prepared and published a series of reference sheets.

Stop by the TG reception at NASFAA
Join TG at the NASFAA conference in Seattle for a reception to celebrate TG's 25 years of service to students and their families.

Question of the week
Is there a timeframe in which ED no longer wants a school collecting unearned aid (i.e., an overpayment that the student owes as a result of the return of Title IV funds calculation) from a student?

Legislative Update

The June 8 issue of TG's Legislative Report includes highlights of the FY 2007 Labor, HHS, and Education appropriations bill funding details. Keep up with the latest developments by reading the full report on TG Online.

This, That, and the Other...

Over the next several months, ED will be offering a variety of Web-based and on-site, instructor-led training on the Higher Education Reconciliation Act of 2005 (HERA). The training is being offered to help clarify the changes brought about by the HERA and the resulting number of recent Dear Colleague Letters released by ED. To find out more about specific training events that could benefit your office and for registration information, visit here.