TG processing and product information for FDLP conversion
As schools make the move from one federal student loan program to another, they are dealing with competing priorities. In completing all of the stages to begin participating in the Federal Direct Loan Program (FDLP), a school might inadvertently overlook some of the issues involved in discontinuing originations under the Federal Family Education Loan Program (FFELP). In order to anticipate schools' needs during this time, TG has gathered the following information on TG guarantee processing, as well as TG products and services, related to the approaching conversion date.

TG offers training session that zeroes in on the challenges of the FDLP transition
It goes without saying that numerous schools are currently in the process of making the transition to the Federal Direct Loan Program (FDLP). If you're leading such an effort at your school, you may be feeling the time crunch of the looming July 1 implementation date, and the pressure to ensure continued federal loan access for your students and families. To help directors and other financial aid office leaders to decompress and regroup, the TG Speakers Bureau offers a professional development session titled "Leading Your Team through Challenging Times."

TG makes TG Annual Report for FY 2009 available online
TG has published its fiscal year (FY) 2009 Annual Report. The report details information on TG's successful performance and continued commitment to outstanding customer support at a time when many unprecedented changes in the delivery of federal student aid continued. Last year, TG guaranteed more than $10.3 billion, representing more than 10 percent of all federal student loan funds awarded to students across the nation, and almost 80 percent of all federal student loan funds awarded in Texas.

ED publishes Dear Colleague Letter to support schools transitioning to Direct loans
On April 20, 2010, ED released Dear Colleague Letter (DCL) GEN-10-06 to provide information to schools that may need its assistance to transition from the Federal Family Education Loan Program (FFELP) to the Federal Direct Loan Program (FDLP).

ED releases instructions for ECASLA CAP submission
ED recently released Electronic Announcement (E-ANN) #84, which provides instructions for the Custodian's submission of a Corrective Action Plan (CAP) for all Attestation Engagement Findings for the 2009-10 loan purchase programs. These loan purchase programs were authorized by the Ensuring Continued Access to Student Loans (ECASLA). The Custodian must use an Attestation Engagement Guide issued by ED's Office of Inspector General. In order to meet the requirement for submission of a CAP, the attestation engagement package submitted to ED must include a CAP on the Custodian's letterhead and in the format prescribed in the announcement.

ED adds Direct PLUS loan functionality to StudentLoans.gov
ED's April 23, 2010, electronic announcement projected that beginning April 25, 2010, ED's website, StudentLoans.gov, will include a new online method to process Direct PLUS loans — Direct PLUS Loan Request for Supplemental Information (Direct PLUS Loan Request). Beginning May 1, 2010, this new online process allows Direct PLUS loan borrowers (both parents and graduate and professional students) to complete a request for a Direct PLUS loan and initiate a credit check.

Borrowers to continue receiving better terms on federal student loans
Thanks to previous reforms to the federal student loan programs that take effect this July 1, students will once again receive better terms on their new federal student loans. This article highlights changes in interest rates and loan fees. As a reminder, lower loan fees offer an up-front benefit to the borrower, while lower interest rates result in significantly lower costs to the borrower over the life of the loan. For a Stafford loan borrower to benefit from the scheduled reduction to the origination fee and interest rate, the first disbursement of his or her Stafford loan must be made on or after July 1, 2010.

Closed school corner
The latest issue of Shoptalk provides a list of newly reported school closures and corrections from the Postsecondary Educational Participants System (PEPS) and from the 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.

Ask the Policy Expert
One of the provisions of the recently enacted Health Care and Education Reconciliation Act of 2010 (HCERA) is the establishment of a temporary authority for students to consolidate their loans into a Direct Consolidation loan while they are still in school. Are the terms of these loans basically the same as a regular Direct Consolidation loan?