Federal Updates

New bill proposes postponement of PLUS auction and changes to loan rehabilitation
The house approved a bill that proposes to suspend the Competitive Loan Auction Pilot Program (auction), which is currently scheduled to take effect for new parent PLUS loan borrowers on July 1, 2009. This bill would in effect postpone the implementation of the auction until July 1, 2010.

ED releases E-ANN on ECASLA Loan Purchase Activity
In an effort to improve transparency in the administration of the Ensuring Continued Access to Student Loans Act (ECASLA) loan purchase programs, ED has issued Electronic Announcement (E-ANN) #54, which provides initial ECASLA activity reports.

Registration open for upcoming IBR webinar
As reported in last week's Shoptalk Online, the National Council of Higher Education Loan Programs (NCHELP) has announced upcoming sessions in its continuing series of webinars on the new Income-Based Repayment (IBR) plan that will be available to borrowers beginning July 1, 2009. The next webinar in the series will be focused on school-related IBR issues.

Proposed private education loan regulations out for public comment
Recently, Shoptalk Online informed our readers of a Federal Reserve Board (Board) press release announcing proposed amendments to Regulation Z, which implements the Truth in Lending Act, or TILA (see edition 495). TG encourages our school and lender customers and their legal counsel to review the proposed rules, and the included model forms and samples.

ED releases 2009-10 Application and Verification Guide
ED published the first volume of the 2009-10 Federal Student Aid Handbook (FSA Handbook), the Application and Verification Guide (AVG).

Closed school corner
The Department of Education announces one new closure.

TG Updates

TG launches enhanced AdvanTG Web™ and TG Loans By Web™ first weekend in April
TG's spring software release introduces a variety of processing efficiencies to its application and loan management system, AdvanTG Web™, and its online loan application tool, TG Loans By Web™. Enhanced versions of these two systems will be available after April 4, the first weekend in April.

Product webinars for enhanced AdvanTG Web™ and TG Loans By Web™ offered
On April 4, TG will make available improved versions of AdvanTG Web and TG Loans By Web. To help users benefit from these modifications and incorporate them effectively into their loan processing, TG has scheduled various webinars that explain the changes and offer time for customer Q&A.

TG reduces its EFT charge for disbursements for all loan types
TG is committed to providing efficient loan processing solutions at the most affordable rates for customers. For disbursements made on or after April 1, 2009, TG has lowered its Electronic Funds Transfer (EFT) cost to $1.22 per disbursement for lenders using TG's EFT product for FFELP Stafford, PLUS, and Grad PLUS loans, as well as private loans.

Early registration deadline today for TG Annual Training Conference
If you're looking for a varied training experience that spotlights the latest regulatory and industry change, you'll find no better option than the 2009 TG Annual Training Conference. Early registration ends today, March 31; however, attendees can register up to the first day of the conference. Early registration rates for hotel accommodations at the Renaissance will also expire on March 31.

TG offers updated borrower instruction sheets for enhanced TG Loans By Web™
To help students and borrowers use the latest version of TG Loans By Web effectively, and to help you prepare for the upcoming award season, TG has updated the TG Loans By Web instruction sheets for student and parent borrowers.

Trends and Issues

Helping borrowers in distress
TG knows that our school customers are committed to assisting students and borrowers through these difficult times. TG is also dedicated to supporting our customers and borrowers in those efforts. In this article, we'll take a look at the various strategies and tools that can make a difference in these efforts.

Policy potpourri
Must students and parents report the stimulus payments received under the Economic Stimulus Act of 2008 on the 2009-10 Free Application for Federal Student Aid (FAFSA)?

Legislative Update

The House and Senate Budget Committees completed work on their respective FY 2010 budget resolutions last week. The House Budget Committee resolution includes reconciliation instructions designed to save $3 billion over the next five years through program changes. The Senate Budget Committee Resolution offers no reconciliation instructions, but does include "revenue-neutral reserve funds" to allow various committees to provide additional funds for health, energy, and education programs. Learn more about the latest legislative developments by reading the full report on TG Online at www.tgslc.org/lege_report/2009/lr_090330.cfm.

This, That, and the Other...

To meet the unique challenges of an uncertain economy, the U.S. Department of Labor is advocating some unique strategies. The department is urging unemployment agencies to collaborate with financial aid offices. Recently, the department instructed state unemployment agencies and other workforce investment system offices to help dislocated workers with financial aid applications.

The College Cost Reduction and Access Act (CCRAA) of 2007 specified that parents and independent students identified as dislocated workers are eligible for the simplified needs test, or automatic zero EFC. The CCRAA also allows financial aid administrators to adjust the cost of attendance used to calculate the EFC when a member of the family is identified as a dislocated worker.

The March 10, 2009, letter from the Department of Labor explains how the new rules affect federal financial aid applications. The letter requests that staff help clients complete the FAFSA. It also suggests that financial aid administrators provide institutions with samples of various types of documentation that prove a student's status.

To learn more about these developments, read the complete article available through the National Association of Student Financial Aid Administrator's Web site at www.nasfaa.org/publications/2009/awdislocated032609.html.