Shoptalk 541, February 23, 2010
Industry Update
Borrowers supporting relief efforts in Haiti may be eligible for military service deferments
Borrowers of Title IV loans (FFELP, FDLP, and/or Perkins) who are serving on active duty in support of relief efforts in Haiti (aka Operation Unified Response), or performing qualifying national guard duty in support of Operation Unified Response, may qualify for military service deferments.
On January 16, 2010, President Obama signed an executive order authorizing a call to active duty under 10 U.S.C. 12304 for members of the Reserves to conduct operational missions related to relief efforts in Haiti. The U.S. Army posted a notice on January 24, 2010, stating that "Operation Unified Response Haiti has been declared a Contingency Operation." A "military operation" is a contingency operation as defined in 10 U.S.C. 101(a)(13). Contingency operations may include "major humanitarian assistance efforts" as per Department of the Army Personnel Policy Guidance for Overseas Contingency Operations," Chapter 1, Section 1-1.
More information
For questions about military service deferment, contact TG customer assistance at (800) 845-6267, or send an email to cust.assist@tgslc.org.
Credit CARD Act rules now in effect
The Credit Card Accountability Responsibility and Disclosure Act of 2009, aka "the Credit CARD Act," primarily amends the Truth in Lending Act (TILA) and establishes a number of new substantive and disclosure requirements to establish fair and transparent practices pertaining to open-end (not home-secured) consumer credit plans. A majority of the requirements under the Credit CARD Act for which the Federal Reserve Board has rulemaking authority, including, among other things, provisions regarding interest rate increases (revised TILA Section 171), over-the-limit transactions (new TILA Section 127(k)), and student cards (new TILA Sections 127(c)(8), 127(p), and 140(f)) became effective on Monday, February 22, 2010.
More information
Schools are encouraged to review the final rules issued by the Federal Reserve Board implementing these provisions.
For questions or more information, visit the Federal Reserve Board website on the act.
USDA begins education loan repayment program to address veterinary shortages
Veterinarians are critical to the national food safety and food security infrastructures, and to the health and well-being of both animals and humans. However, major studies indicate significant and growing shortages of food supply veterinarians and veterinarians serving in certain other high priority specialty areas. A leading cause for this shortage is the heavy cost of four years of professional veterinary medical training, which can average between $130,000 and $140,000.
With the National Veterinary Medical Services Act of 2003, Congress established the Veterinary Medicine Loan Repayment Program (VMLRP), as a way to remedy this growing need. In return for a commitment of three years of veterinary services in a designated veterinary shortage area, USDA's National Institute of Food and Agriculture (NIFA), which administers the VMLRP, may repay up to $25,000 of student loan debt per year. Loan repayment benefits are limited to payments of the principal and interest on government and commercial loans received for the attendance at an accredited college of veterinary medicine resulting in a degree of Doctor of Veterinary Medicine or the equivalent.
More information
NIFA issued an interim rule for the program on July 9, 2009. Implementation of the program began on January 22, 2010, when NIFA released a Federal Register notice asking health officials to nominate shortage situations within 45 days. NIFA will convene a panel of federal and state animal health experts to recommend submitted nomination packages for official designation as a veterinary shortage situation. The public will be able to review designated veterinary shortage situations in list and/or map form, along with information describing the nature of the shortage situation.
NIFA will accept applications from veterinarians wishing to participate in the program from April 30 until June 30, 2010; offers will be made by September 30.
Questions?
For questions about loan forgiveness programs and other repayment options, please contact TG customer assistance at (800) 845-6267, or send an email message to cust.assist@tgslc.org.
