Federal Updates

Resource on changes to Economic Hardship Deferment now available

TG is pleased to provide a new resource titled, "Questions and Answers Related to July 1, 2009 Changes in Eligibility Criteria." The document, which was developed by the NCHELP Program Regulations Committee and Student Loan Servicing Alliance (SLSA), provides guidance to assist schools and lenders in understanding and implementing changes to the Economic Hardship Deferment (HRD) regulations.

Background
Effective July 1, 2009, two eligibility criteria for HRD will be eliminated: the "20/220" criterion, and the criterion that allows a borrower "working less than full time" but making less than an established threshold to receive the deferment. (These are options #5 and #6 on the current HRD form.)

These changes apply to deferment requests received by the lender on or after July 1, 2009, for deferment periods that begin on or after July 1, 2009. In the preamble to the final rules published in the October 23, 2008, Federal Register, ED clarified that lenders are permitted to grant an HRD based on the two affected criteria for a borrower who requests the deferment after July 1, 2009, but only in those instances where the deferment period begins prior to July 1, 2009, and the deferment period does not exceed 12 months from the date on which the period began (the pre-July 1, 2009, date.)

However, no additional periods of HRD may be granted based on the soon-to-be eliminated criteria at the conclusion of that deferment period, or for any deferment request received by the lender on or after July 1, 2009, if the deferment period begins on or after the July 1, 2009 date.

More information
The resource document is available at http://www.tgslc.org/policy/index.cfm.

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ACG and SMART grant interim final rules published

On May 1, ED published interim final rules for the Academic Competitiveness Grant and National SMART Grant Programs, implementing changes brought about by the Ensuring Continued Access to Student Loans Act (ECASLA) and Higher Education Opportunity Act (HEOA). The interim final rules also make conforming changes, as needed, to certain Pell grant regulations and general provisions regulations. ED will accept comments from affected and interested parties on or before June 1, 2009.

Proposed changes
The interim final rules would incorporate the following elements into the ACG and SMART Grant regulations, effective July 1, 2009:

• Transitioning from academic year to grade level, concerning the student's period of eligibility
• Permitting a student who is enrolled less than full time, but at least half time, to be eligible for the grant programs
• Changing the definition of "eligible program" to include students enrolled in certain certificate programs and students enrolled in certain SMART grant-eligible programs that extend beyond 4 years
• Removing the requirement that a grant recipient be a U.S. citizen, to align with student eligibility requirements in effect for other Title IV aid programs
• Other substantive changes to prior enrollment requirements; rigorous secondary school programs of study; determining, documenting, and declaring an eligible major; and grant amount calculations.

More information
The Federal Register announcing the interim final rules is available at http://edocket.access.gpo.gov/2009/pdf/E9-10094.pdf.

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Mapping Your Future^® announces TEACH grant counseling changes for 2009-10 academic year

Beginning with the 2009-10 academic year, students must satisfy the TEACH grant initial and subsequent counseling requirements by completing a U.S. Department of Education (ED) counseling session. Students must complete ED's online initial or subsequent counseling before they can complete an Agreement to Serve, which is required before receiving a TEACH grant. Initial or subsequent counseling sessions provided by Mapping Your Future or any other entity will not satisfy the counseling requirement.

Schools may continue to use Mapping Your Future's TEACH grant initial and subsequent counseling through the 2008-09 academic year. The date to discontinue Mapping Your Future's TEACH grant initial and subsequent counseling session has not been determined. Schools should be sure to retrieve initial and subsequent counseling records before the counseling session is discontinued.

Schools may continue to use Mapping Your Future's TEACH grant exit counseling.

For questions
Please contact the Mapping Your Future staff at feedback@mappingyourfuture.org with any questions.

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