Federal Updates

Congress considers new student loan legislation
Last week, members of the Senate and House announced separate pieces of legislation in response to recent credit market and student loan access concerns.

PLUS MPN extended
The current PLUS Loan Master Promissory Note (PLUS MPN) was scheduled to expire on March 31, 2008.

Current special allowance rates: Quarter ending March 31, 2008
Special allowance rates for the quarter ending March 31, 2008, are now available.

TG Updates

TG lays groundwork to operate lender-of-last-resort program
The lender-of-last-resort (LLR) program is designed to ensure that eligible student loan borrowers who are unable to locate a lender have access to Federal Family Education Loan Program (FFELP) funds. TG first implemented its LLR program in 1994, and is currently updating its procedures to reflect current electronic processes in the FFELP, and to make adjustments to address the challenges of the current environment.

2008 TG Annual Training Conference offers workshops on leadership in periods of change
This year’s conference offers more than 65 sessions on a wide range of subjects, from financial literacy and default prevention to technology for streamlining practices of the financial aid office.

TG adds new features to its Web tool on consolidation — Consolidation Station^SM
If they haven’t already, your December graduates are probably looking more seriously at student loan consolidation. To better weigh their options, borrowers often like to consider what their consolidation payment might be. For these borrowers, TG offers help in the form of a new calculator tool for its consolidation Web site — Consolidation Station.

Reminder to TG's lenders: Upcoming interest rate changes
Effective April 7, 2008, TG will have programming in place to accommodate the new interest rates for undergraduate subsidized Stafford loans with first disbursement dates scheduled on or after July 1, 2008.

Nancy Wilson, assistant vice president of TG's program review team, helps schools and lenders abide by FFELP regulations
Guarantors are an integral part of FFELP oversight and administration, and TG's program review team plays a key role in TG's fulfillment of these responsibilities.

Trends and Issues

Understanding the roles of lenders, servicers, and secondary markets
FFELP post-disbursement activities will vary depending on the policies and philosophy of the original lender. In this article we hope to provide a high-level overview of the system and process so that the next time a student comes into your office with a student loan-related letter or statement from an unfamiliar organization, you’ll be prepared to answer his or her questions.

Question of the week
Can a student be granted more than one leave of absence in a single academic year?

Legislative Update

The Bush administration's FY 2009 budget proposal to Congress proposes to save money by repealing the Supplemental Educational Opportunity Grant Program and the Federal Perkins Loan Program, and keeping funds level for other Title IV programs. The House and Senate Budget Committees have rejected the administration's submission and are developing a budget resolution that proposes to increase appropriations for the Pell Grant Program with smaller increases for the other Title IV programs. Learn more by reading the full report on TG Online at www.tgslc.org/lege_report/2008/lr_080402.cfm.

This, That, and the Other...

Each year, Congress designates April as National Financial Literacy Month to promote education on financial and money management issues. This year's dedication has special resonance given the crisis in various financial markets, including student loans. If you'd like to provide training to your students on financial literacy issues, consider TG's extensive readymade program on money management and default prevention — Positive+Balance™.

Positive+Balance offers students a series of seminars on the basics of money management and academic and career success. With Positive+Balance, you can help students set and follow a pattern of fiscal responsibility. To find out more, contact your account executive at (800) 252-9743. You can also learn more from TG's default aversion consultants at (800) 252-9743, ext. 4765, or at (800) 252-9743, ext. 4696.