Federal Updates

Another HEA extension

With the current extension of the Higher Education Act (HEA) set to expire on March 31, 2008, Congress has approved another short-term extension, this one through April 30, 2008. The bill, S 2733, provides for a “clean” extension and was signed by the President on March 24.

Since our last reauthorization update (see Shoptalk Online edition 441), Congress has been working in earnest on crafting a comprehensive reauthorization bill, and indicates that it hopes to complete that process after returning from its two-week Easter break. Shoptalk Online will keep you apprised of new developments as they occur.

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Proposed regulations issued for TEACH Grant Program

Following several months of public hearings and negotiated rulemaking sessions, ED has published a notice of proposed rulemaking (NPRM) for the TEACH (Teacher Education Assistance for College and Higher Education) Grant Program, available in the March 21, 2008, Federal Register at http://a257.g.akamaitech.net/7/257/2422/01jan20081800/
edocket.access.gpo.gov/2008/pdf/E8-5196.pdf. This NPRM also proposes conforming changes to various federal student aid programs in order to implement the TEACH Grant-related provisions.

Proposed regulations resulting from negotiations for student loan issues will be issued following the conclusion of those sessions in mid-April.

Submitting comments

ED will accept comments on the proposed regulations through April 21, 2008, after which final regulations will be issued. Comments may be submitted through the Federal eRulemaking Portal at www.regulations.gov. Under "Search," enter ED–2008–OPE–0001, then click “Send comment or submission.”

If you've never submitted comments to ED, you may be unsure of the protocol and process. Here are a few tips for developing and submitting your comments:

• A comment can be a criticism, a suggestion, a question, or an endorsement.
• For each of your comments, clearly identify the section of the proposed regulations to which your comment pertains.
• If you believe the language in a proposed regulation could be improved, suggest alternative language.
• If you agree with a proposed regulation but think the language is unclear, you may request that ED provide clarification and interpretation in the preamble to the final rules.
• Positive comments are just as important as criticisms — if you like a proposed change, your endorsement could offset another commenter's objection.
• State your comment clearly and concisely, and provide a rationale for your argument.

TEACH Grant training available

ED has announced a TEACH Grant Implementation and Processing webinar, to be held on Thursday, April 10, 2008, from 2:00 pm - 3:30 pm Eastern Time (1:00 pm – 2:30 pm Central Time). More information about this webinar, including registration instructions, is available at http://ifap.ed.gov/dpcletters/ANN0803.html.

More information For questions about the TEACH Grant program, or the recently released regulations, contact TG customer assistance at (800) 845-6267, or send an e-mail message to cust.assist@tgslc.org.

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New brochure from ED explains advantages of federal student loans

During her March 14 testimony before the House Committee on Education and Labor, Education Secretary Margaret Spellings introduced a new brochure developed by ED to encourage students and families to maximize more affordable federal student aid options available to them before pursuing other options.

A recent report from the American Council on Education titled “Who Borrows Private Loans?” concludes that, while 88 percent of private loan borrowers complete a FAFSA, 21 percent of undergraduate private loan borrowers do not first borrow a Stafford loan. (This report is available online at www.acenet.edu/AM/Template.cfm?Template=/CM/ContentDisplay.cfm&ContentID=23410
&FusePreview=True&WebsiteKey=31cadfd9-b130-44b4-af2e-6603cbcc422b.). Unfortunately, these troubling statistics may merely confirm what aid administrators have long suspected.

For schools that wish to take a proactive approach to minimizing their students’ unnecessary use of private loan funds, this brochure may provide another tool to assist in that endeavor. “Federal Aid First” explains why students who are looking to borrow money for college should apply for loans from the federal government first, before seeking assistance from private lenders. It also includes brief explanations of the differences between federal and private education loans, as well as the various kinds of federal loans and the amounts of funds available.

To obtain the brochure

A PDF version of the brochure is available at www.federalstudentaid.ed.gov/federalaidfirst/index.html, and the brochure may also be ordered online at http://edpubs.ed.gov/. On this page, enter “ED004201P” in the Search box.

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