Federal Updates

E-mail from ED solicits input on student loan issues
ED announced in the March 4, 2008, Federal Register that it would soon be sending e-mail messages to financial aid administrators at schools participating in the FFELP. This e-mail will advise schools that ED is monitoring the current credit environment and invite administrators to relay any information regarding lenders that are planning to modify their participation in student loan programs.

Encouraging innovation in verification: ED's Quality Assurance Program
After spending too many hours staring at tax returns and verification worksheets, have you ever wished you could make up your own rules for verification? Well, ED is offering you the chance to do that — within limits, of course. Last week, ED published a notice in the Federal Register announcing it will begin accepting applications for participation in the Quality Assurance Program (QAP).

Stafford MPN extended
The current Stafford Loan Master Promissory Note (Stafford MPN) was scheduled to expire on February 29, 2008. However, ED has received a notice from the Office of Management (OMB) approving an extension of the current form, to May 31, 2008.

TG Updates

TG offers training to assist financial aid professionals with entrance and exit counseling
According to new federal regulations effective July 1, lenders, servicers, and guarantors will no longer be allowed to provide entrance and exit student loan counseling for students on behalf of schools. TG’s Effective Loan Counseling session provides information to aid institutions as they develop and deliver entrance and exit counseling of their own to students.

With customer help, Mike Nowlin works to make TG's EFT even more effective
TG began disbursing loan funds through its Electronic Fund Transfer (EFT) process in 1991, and, since then, has made over $19 billion in disbursements electronically. Managing such an important process for TG customers involves many of TG’s team members. However, it’s the job of one in particular to gather feedback on EFT and help turn that customer request into a system reality — Mike Nowlin.

Trends and Issues

Question of the week
I have heard that the rules have changed for using current year Title IV funds to pay minor prior year charges. Could you please explain the changes and when they will go into effect?

Common Manual

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

This, That, and the Other...

Upward mobility for the poor or middle class has remained static over the last three decades, says a recent study. In fact, the hope of joining a wealthier class is dimming for a larger segment of poor earners.

The study conducted by the Brookings Institution in Washington warns that gaps in higher education between rich and poor, whites and minorities, are widening and could soon lead to fewer opportunities for very poor families.

The researchers found that Hispanic and black Americans were falling behind whites and Asians in earning college degrees, making it harder for them to enter the middle class or move upward.

The study however does show that college can have a powerful effect in helping people grow in earning potential. An individual from the lowest fifth of earners who graduates with a degree has a 19 percent chance of joining the highest fifth of earners in adulthood, according to the study. They have a 62 percent chance — or more — of joining the middle class.

Read the complete New York Times article on the topic at www.nytimes.com/2008/02/20/us/20mobility.html?_r=2&ref=education&oref=slogin&oref=slogin.