Federal Updates

Progress on economic stimulus bill
A new economic stimulus bill (H.R. 1) is winding its way through the legislative process. H.R.1, or "The American Recovery and Investment Act of 2009," includes several financial aid-related provisions among its wide array of proposals. The full House has approved H.R.1 by a vote of 244-188, while the Senate is scheduled to vote on its version of the legislation this week.

ED submits report to Congress on FAFSA simplification
Although the Higher Education Opportunity Act of 2008 (HEOA) introduced myriad disclosure and reporting requirements for schools, loan holders, and guarantors, it also included some new administrative requirements for the Department of Education.

Customer service information for FFELP borrowers with loans purchased by ED
ED released an Electronic Announcement (E-ANN) providing customer service information for borrowers of FFELP loans that have been purchased by ED through the Ensuring Continued Access to Student Loans Act (ECASLA) programs.

Heads up: Draft CDRs coming next week
ED announced that it will release draft FY 2007 cohort default rates to domestic and foreign schools on February 9, 2009. Shoptalk Online will provide more information in next week's edition.

TG Updates

Update to TG's notice on new encryption software
On January 31, 2009, TG switched to a new e-mail encryption software service developed by Cisco Systems®.

Reauthorization resource updated
TG is pleased to announce that the Higher Education Opportunity and Access Act (HEOA) resource available on TG Online has been updated to include information from Dear Colleague Letter (DCL) GEN-08-12.

TG Public Benefit Grant Program now accepting proposals for AY 2009-10
TG's Public Benefit Grant Program has begun accepting proposals for AY 2009-10 from educational and nonprofit organizations seeking funds for projects focused on improving student access to, and participation in, higher education.

New Positive+Balance™ training helps students understand their financial aid options
Fifty-five percent of undergraduate students in the U.S. receive financial aid to help pay for college, but many who qualify don't apply or assume incorrectly that they are not eligible for aid. To educate students about their payment options, TG offers some in-person support with its comprehensive program on financial literacy, Positive+Balance™.

TG reaches out to students and families during Financial Aid Awareness Month
TG team members will attend key events planned for Financial Aid Awareness Month, helping families complete and submit the Free Application for Federal Student Aid (FAFSA) and offering that extra motivation for students aspiring to a college education.

TG releases new edition of State of Student Aid and Higher Education in Texas
TG recently made available the latest issue of the State of Student Aid and Higher Education in Texas, a publication that offers Texas policymakers, their staff, and members of the student financial aid community an overview of key facts that describe student financial aid in Texas.

Common Manual

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

Legislative Update

The 111th Congress convenes during a turbulent time in U.S. economic history. A flurry of new policies has been proposed or enacted to help alleviate current market stresses, including various executive orders and several proposed pieces of legislation, such as the American Recovery and Investment Act. Among other things, this new legislation would increase the maximum Pell grant by $500, from $4,850 to $5,350; add $490 million to College Work-Study; and increase limits on unsubsidized Stafford loans by $2,000. Learn more about legislative developments by reading the full report on TG Online at www.tgslc.org/lege_report/2009/lr_090129.cfm.

This, That, and the Other...

Students are paying more of the total cost of their education at all institutions except private research universities. According to a new report, "Trends in College Spending: Where Does the Money Come From? Where Does It Go?", the share of educational costs represented by student tuition rose from just over one-third to nearly one-half at public four-year institutions. At private master's and bachelor's institutions, students are paying between 75 and 85 percent of the full cost of their education. The report, produced by the Delta Project on Postsecondary Costs, Productivity, and Accountability, examines revenue and expenditure data for nearly 2,000 public and private nonprofit colleges and universities and analyzes recent trends, focusing on the period from 2002 to 2006. The study analyzes recent patterns in higher education finance by looking at various metrics, including revenue, spending, and student share of educational costs. The report finds that students are shouldering a bigger portion of educational debt, but getting less in terms of education as universities spend more on administrative overhead.

You can learn more about the study and its conclusions at www.deltacostproject.org/resources/pdf/trends_in_spending-summary.pdf.