Federal Updates

More Neg Reg on the horizon
With the spring 2009 round of negotiated rulemaking (Neg Reg) just recently concluded, ED has announced plans to establish additional Neg Reg committees that will begin meeting in fall 2009.

ECASLA close-out reminder and upcoming webinar
ED has issued Electronic Announcement #63, dated May 26, regarding the 2008-2009 Loan Purchase Participation Program authorized by the Ensuring Continued Access to Student Loans Act (ECASLA). ED also announced that it will conduct a webinar on the closeout procedures.

Other ECASLA news
ED has revised its post-Put reconciliations process to allow reallocations of loan funds between subsidized and unsubsidized Stafford loans that result in a zero net balance change. ED also has posted a Q&A document providing additional guidance on the Asset Backed Commercial Paper Conduit.

Variable interest rates drop again
Stafford and PLUS loans first disbursed on or after July 1, 1998, and before July 1, 2006, have variable rates. The new rates reflect a decrease of 1.73 percent.

Income-Based Repayment: Not just another repayment plan
Financial aid administrators may be aware that IBR will benefit certain borrowers by minimizing monthly payments and by providing loan forgiveness in some cases; but the full potential of IBR to assist in default prevention has yet to become fully apparent.

Closed school corner
ED announced a correction to a previous school closing posting.

TG Updates

TG to host two financial literacy symposiums this summer
TG is hosting two symposiums this summer to help schools with their financial literacy efforts. The symposiums will bring together experts from the higher education community who will discuss strategies for developing on-campus financial literacy programs.

TG reschedules webinars on enhanced Integrated Default Assistant™
TG has rescheduled several webinars on the latest changes to its default management tool — the Integrated Default Assistant™ (IDA™). The IDA product webinars will be offered on Monday, June 15, and Tuesday, June 16.

Stay on top of July change to loan interest rates with TG poster
Effective July 1, 2009, the fixed interest rate for undergraduate subsidized Stafford loans (FFEL and Direct) will change. TG offers a poster to remind you of the new subsidized Stafford loan interest rate, the unsubsidized Stafford loan interest rate, and the PLUS interest rate.

This, That, and the Other...

Secretary of Education Arne Duncan recently announced that the U.S. Department of Education, along with the Departments of Energy and Labor, will collaborate to connect jobless Americans with job opportunities, or with training and education.

“Partnerships such as this one demonstrate how government can be a catalyst for renewal as workers reinvent themselves and learn new skills,” Duncan said in a news release issued by ED. “At the same time, the creative minds of America’s students will develop the emerging industries that feed a green economy if we support their growth.”

The Department of Energy will notify the Department of Labor as funding commitments are made and jobs created. The Department of Labor will, in turn, provide the information to local One Stop Employment Centers that connect unemployed workers with jobs, training, and education opportunities. The Department of Education will help identify the educational resources for training.

To learn more about this comprehensive initiative, read the complete press release on ED’s Web site located at www.ed.gov/news/pressreleases/2009/05/05272009.html.