Federal Updates

A glimmer of hope for reauthorization
In recent weeks, Congress has made significant progress toward completing the long-delayed reauthorization of the Higher Education Act (HEA).

Final rules 101: Loans, loans, loans
We continue this week with our coverage of changes resulting from ED's recent release of final rules for loans and general provisions. In this article we will focus on changes to loan discharge programs and changes that will impact the Perkins Loan Program.

TG Updates

TG offers free teleconference on the loan issues final rules
On November 1, ED released a regulations package pertaining to the Title IV loan programs. To assist our business partners in understanding and implementing these new rules, TG will provide a free teleconference including a summary of the rules and a discussion of the major provisions that will impact students, borrowers, schools, and lenders.

You are invited: TG Annual Conference planned for mid-April 2008
Mark your calendars for the 2008 TG Annual Conference, which will be held April 23-25 at the Renaissance Hotel in northwest Austin.

Tech Report

Latest AdvanTG Web™ enhancements help lenders with compliance and schools tracking credit decisions
In late October, TG implemented the latest round of changes to AdvanTG Web, its online loan management system. Lenders will find that they can now disclose more information to borrowers through TG Loans By Web™, and schools will like the added versatility in tracking changes to credit decisions.

Tool tips: Learn more about the latest credit processing enhancements for AdvanTG Web™
This fall, TG rolled out several enhancements to its loan management product. Given the various ways that schools and lenders perform credit processing, TG would like to walk customers through the new Reversal of Previous Credit Denial function based on the process that applies to your specific institution.

Trends and Issues

Question of the week
In order to be eligible for federal student aid, a student must have a high school diploma, pass an ED-approved ability-to-benefit test, complete home schooling at the secondary level, or have the recognized equivalent of a high school diploma. What are some examples of a recognized equivalent of a high school diploma?

Legislative Update

As the year — and first Session of the 110th Congress — draw to a close, the congress and administration are engaged in a deadlock over the amount of funding included in the FY 2008 appropriations bills. The administration is vowing to veto the remaining 11 funding bills, because they include funding over the amount requested by the administration for health, education, and human service programs. However, a congressional majority is arguing that the overage is not significant and is fully paid for with current revenues. To learn more about the latest developments on the Hill, read the complete Legislative Report at www.tgslc.org/lege_report/2007/lr_071121.cfm.

This, That, and the Other...

Parents and students regularly report sticker shock when they purchase that first semester's set of textbooks. What is the average amount that students spend on their required course reading? While this information varies based on factors such as course load, the College Board reports that the cost of books and supplies for the 2005-06 academic year ranged from $801 to $904 depending upon the type of institution. Students can recoup some of these charges by selling back used textbooks.

The National Association of College Stores (NACS) provides some interesting statistics on book costs and the average profit margin for a college store. According to NACS' 2007 College Store Industry Financial Report, profit on new textbooks runs about 22.4 percent. This margin has remained relatively constant since 1989. For used textbooks, the margin can be considerably higher — about 35.8 percent.

NACS offers a handy graphic that encapsulates costs and profits for each dollar spent on textbooks. According to this chart, authors get paid on average 11.6 cents per dollar spent on textbooks. Publishers make a profit of about 7 cents after taxes, and college stores earn about 4.4 cents on the dollar, pre-tax.

You can learn more about where each textbook dollar goes at www.nacs.org/common/research/textbook$.pdf.