Federal Updates

New bill proposes postponement of PLUS auction and changes to loan rehabilitation

Yesterday, 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.

The bill, H.R. 1777, also revises the current loan rehabilitation process by permitting guarantors to assign a rehabilitated loan to ED, if ED determines that the guarantor, due to market conditions, has been unable to sell the loan to an eligible lender.

The bill also proposes various other technical amendments to the Higher Education Act, such as permitting lenders and guarantors to provide entrance counseling. It will be next sent to the Senate for consideration. Should the Senate approve it, the bill will be sent to the President for his signature.

More information
Shoptalk Online will keep readers informed as this bill progresses through the legislative process.

To access the text of H.R.1777, go to THOMAS, the U.S. Congress Web site, at http://thomas.loc.gov. In the space for "Search Bill Summary & Status," enter "H.R.1777," select "Bill Number," and then click on "Search." For questions, contact TG customer assistance at (800) 845-6267, or send an e-mail message to cust.assist@tgslc.org.

  Back to Top

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. These reports provide a summary, by lender and program, of participation interests and loans purchased by ED through the 07/08 and 08/09 Loan Purchase Programs, through the date of the report.

The information will be updated weekly and may be accessed under the following links:

• 07/08 Loan Purchase Program
• 08/09 Loan Participation Purchase Program
• 08/09 Loan Purchase Commitment Program

More information
This E-ANN, as well as other ECASLA-related information, is available on ED's ECASLA Web page at http://federalstudentaid.ed.gov/ffelp.

  Back to Top

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.

"An Introduction to IBR for Schools" (scheduled for April 9, 1:30 p.m. - 3 p.m., CDT) is intended to assist schools with general counseling, and will include an overview of IBR, including eligible loans, key terms, determination of partial financial hardship, tracking payments, and loan forgiveness.

Registration
Register for this free webinar at http://event.on24.com/r.htm?e=140203&s=1&k=1FF8EB53F071C630D95AF905210B7D53. Please remember that NCHELP webinars deliver both the audio and presentation slides via your PC; there is no dial in "audio only" option.

  Back to Top

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). The amendments are necessary in order to implement certain provisions of the Higher Education Opportunity Act of 2008.

Last week, the official Notice of Proposed Rulemaking (NPRM) was published in the Federal Register, along with a request for public comments. TG encourages our school and lender customers and their legal counsel to review the proposed rules, and the included model forms and samples. Comments may be submitted, as described in the NPRM, through May 26, 2009.

More information
You may access the NPRM at http://edocket.access.gpo.gov/2009/pdf/E9-5561.pdf.

  Back to Top

ED releases 2009-10 Application and Verification Guide

On March 25, ED published the first volume of the 2009-10 Federal Student Aid Handbook (FSA Handbook), the Application and Verification Guide (AVG). TG will make the AVG available on TG Online at www.tgslc.org/resources/fsa_handbook.cfm; other volumes will be posted as they are released. Once all the volumes of the 2009-10 FSA Handbook have been released, TG will provide a single downloadable file encompassing all of the volumes.

For more information
Watch future editions of Shoptalk Online for details. The AVG is also available on the IFAP Web site at http://ifap.ed.gov/fsahandbook/0910AVG.html.

  Back to Top

Closed school corner

The following table provides a list of newly reported school closures and error corrections from the Postsecondary Educational Participants System (PEPS) and from the March 2009 Closed School Monthly Report supplied by ED. Schools listed are those with which TG has done business or to which TG has otherwise provided services.

  Back to Top