Federal Updates

HEA extension signed

Last week we reported that another extension of the Higher Education Act (HEA) was in the works, and since then it has been approved by both chambers of Congress and signed into law.

The original bill, HR 3927, was replaced with a slightly different version from the Senate (S 2258), the Third Higher Education Extension Act of 2007. Instead of the six month extension proposed by the House, S 2258 extends the HEA for five months, through March 31, 2008, and also makes a slight revision to the definition of nonprofit holder as found in the College Cost Reduction and Access Act (CCRAA).

For more information
To access the text of S 2258, go to Thomas, the U.S. Congress Web site, at http://thomas.loc.gov/. In the space for "Search Bill Text," enter "S 2258," click on "Bill Number," and click "Search."

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Final rules for loans and general provisions

On November 1, ED released the much-anticipated final rules for loan provisions (available online at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/07-5332.pdf) and general provisions (http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/E7-21083.pdf).

The final rules incorporate many changes from the proposed rules released last summer, based on community comments submitted to ED. Although the new rules will become effective July 1, 2008, ED has designated several changes in the loan provisions rules for early implementation "at the discretion of each institution, lender, guaranty agency, or servicer, as appropriate."

Those provisions include:

• Simplification of the deferment process and allowing a borrower’s representative to request a military service deferment or Armed Forces deferment;
• Allowing the use of an accurate and complete photocopy of an original or certified copy of a borrower’s death certificate to support the discharge of a Title IV loan due to death;
• For Grad PLUS borrowers, requiring entrance counseling and modifying exit counseling;
• Limiting the collection costs a school may assess against a Perkins loan borrower;
• Limiting the frequency of capitalization on Consolidation loans to a quarterly basis (however, a lender may only capitalize unpaid interest that accrues during an in-school deferment at the expiration of the deferment);
• Allowing a lender to suspend credit bureau reporting for 120 days and granting borrowers a 120-day forbearance on a loan while the lender investigates a false certification as the result of identity theft.

Beginning with next week’s edition of Shoptalk Online, we will provide a series of articles covering specific areas of the rules; the first article will focus on prohibited inducements and preferred lender lists.

More information
If you have any questions about the final rules, please contact TG customer assistance at (800) 845-6267, or send an e-mail message to cust.assist@tgslc.org.

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ED provides new FERPA guidance

ED has released three new brochures regarding the Family Educational Rights and Privacy Act (FERPA). The brochures, available online at www.ed.gov/policy/gen/guid/fpco/ferpa/safeschools/, include the following titles:

• Balancing Student Privacy and Campus Safety: A Guide to the Family Educational Rights and Privacy Act for Colleges and Universities
• Balancing Student Privacy and School Safety: A Guide to the Family Educational Rights and Privacy Act for Elementary and Secondary Schools
• Parents' Guide to the Family Educational Rights and Privacy Act: Rights Regarding Your Children's Education Records

To learn more
Copies of the brochures may also be ordered from ED by calling (877) 433-7827, or by e-mailing edpubs@inet.ed.gov.

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NSLDS Newsletter #15 available

Last week, ED released NSLDS Newsletter #15, which discusses recent enhancements to the National Student Loan Data System (NSLDS) for the 2008 award year.

Highlights of the changes include:

• Security measures implemented by NSLDS to ensure the confidentiality of student aid information
• The NSLDS e-mail address change from nslds@pearson.com to nslds@ed.gov
• Increased FFEL and Direct loan amounts for the 2007-08 award year
• Changes to the NSLDS system for enrollment reporting when schools close, merge, or become ineligible for Title IV aid
• Access to the most recent version of the Transfer Student Monitoring User Guide on www.ifap.ed.gov
• NSLDS enhancements to display Teacher Loan Forgiveness (TLF) and Loan Discharge Information
• Availability of a new NSLDS report for schools seeking to retrieve detailed student and loan program information
• Display changes on the NSLDS for Students Web site

More information
To access NSLDS Newsletter #15, visit the Information for Financial Aid Professionals (IFAP) Web site at http://ifap.ed.gov/nsldsmaterials/1030NSLDSNewsletter15.html.

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