Federal Updates

ED releases interim final rules for 9/11 discharge
On December 28, 2006, ED issued interim final rules for the new loan discharge for survivors of victims of the September 11, 2001 attacks.

Closed school corner
The Department of Education announces two new closures.

Current special allowance rates: quarter ending December 31, 2006
Special allowance rates for the quarter ending December 31, 2006, are now available.

TG Updates

Offer your students FAFSA help with TG's FAFSA Made Easy program
Looking for an interesting, informative, and free way to help students complete the Free Application for Federal Student Aid, or FAFSA? Try TG's FAFSA Made Easy, an annual program that guides students and families through each section of the application, offering useful tips and information.

Register today for TG's annual lender and servicer training
The Annual Lender and Servicer Training provides lenders and servicers an opportunity to learn more about how TG can enhance lender services; it also offers an update on various TG initiatives.

TG issues guidance about correct GB loan status reporting
With time, Grad PLUS loans have become more familiar to the FFELP industry. But certain areas of Grad PLUS processing bear careful attention, especially reporting Grad PLUS loan statuses.

TG releases NSLDS submittal schedule for 2007
TG's data reporting team has released the TG NSLDS reporting schedule for 2007.

Product spotlight: TG's Options After Default brochure
In a concise, portable form, the Options After Default brochure defines what default means; lists the rewards of staying on track with payments; defines various ways of recovering from default; and makes clear the consequences of doing nothing on a defaulted loan.

Trends and Issues

Former Senator Robert T. Stafford, namesake of the Federal Stafford Loan Program, dies at 93
Senator Robert T. Stafford, after whom the nation's largest student loan program is named, died on December 23, 2006, at the age of 93.

Question of the week
I am preparing to complete the FAFSA; but because my parents are divorced I am not sure which parent's information I should use to complete the parent portion of the application. Would I use the parent who claimed me as a tax dependent on their tax return for the relevant year, or would I use the parent with whom I live? My parents make about the same amount of yearly income: Is income a factor that should be considered? What other factors should a student and/or a parent consider when completing the FAFSA if the student's parents are divorced?

Common Manual

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

Legislative Update

The Democrats, who have taken control of both Houses of Congress, have set a tight agenda for the first few weeks of the session for the House of Representatives, scheduling discussion on a slew of bills that should receive swift passage given the Democratic majority. Bills touching on the federal minimum wage, Medicare prescription drug prices, ethics reform, and subsidized student loans are just some of these measures. Democrats are advocating a reduction in interest rates on subsidized student loans from 6.8 percent to 3.4 percent. The cost would be covered in other ways, according to Democrats. To learn more about this particular bill, read the full report on TG Online at www.tgslc.org/lege_report/index.cfm.

This, That, and the Other...

Did you know that the Free Application for Federal Student Aid (FAFSA) was first created as a result of the 1992 reauthorization of the Higher Education Act (HEA)?

The reauthorization revised section 483 of the HEA, which mandates that "The Secretary [of Education], in cooperation with representatives of agencies and organizations involved in student financial assistance, shall produce, distribute, and process free of charge a common financial reporting form to be used to determine the need and eligibility of a student for financial assistance…" It also revised section 479, which established a unified federal methodology.