May 25, 2010 - Edition 555 TG
Shoptalk

Industry Update

ED publishes Loan Purchase Program Electronic Announcements
ED published Loan Purchase Program Electronic Announcement #86, which provides important information on the ending dates for the 2009-2010 Loan Purchase Programs.

Professional judgment guidance continues to apply for 2010-11 award year and beyond
ED confirms that the information provided in the two recent DCLs (GEN-09-04 and GEN-09-05) continues to be in effect for the 2010-11 award year and subsequent award years until further notice.

ED invites schools to participate in the Federal Perkins Loan Default Reduction Assistance Program
A school may voluntarily participate in ED's Default Reduction Assistance Program (DRAP) at no cost. DRAP is designed to assist schools in bringing defaulted Perkins Loan borrowers into repayment and may significantly reduce the number of defaults and the cohort default rate for the school.

Congress funds Civil Legal Assistance Attorney Loan Repayment Program
The Civil Legal Assistance Attorney Loan Repayment Program was authorized by the Higher Education Opportunity Act (HEOA). Congress appropriated $5 million for the repayment program through the Consolidated Appropriations Act of 2010.

ED releases new interest rates for Stafford and PLUS loans
ED summarized fixed and variable interest rates for FFELP and Direct loans that will be effective beginning July 1, 2010.

TG Report

Preparing for industry change? TG's regional trainings can help
TG's regional trainings offer a forum in which to learn more about regulatory changes required by the federal loan program shift. These trainings also offer help in preparing staff to better embrace general process and culture changes required by the transition.

Four takeaways for your graduating seniors
Deadlines, relocation, job prospects — these can overwhelm even the most organized student. Offering these students information as they depart school can be key to their long-term success career-wise and in repaying any student loans they may have.

TG closed on Memorial Day
TG will be closed next Monday, May 31, in observance of Memorial Day. TG will resume normal business hours on Tuesday, June 1.

Smart Solutions
Summer jobs are important to many continuing students. Help them line up their next positions with some concise advice on job-hunting and interviewing. TG's Adventures In Education offers an assortment of tips and checklists.

News Briefs

Millions of dollars of financial aid go unused at community colleges. Low- and moderate-income community college students often qualify for but don't apply to obtain financial aid, according to research cited by the College Board in its report titled "The Financial Aid Challenge: Successful Practices that Address the Underutilization of Financial Aid in Community Colleges." Since securing financial aid can be key to retention and eventual graduation for many students, the College Board recommends a variety of practices for motivating low-income community college students to complete and submit the Free Application for Federal Student Aid, or FAFSA. These practices include, among other things, offering bilingual services and materials, maintaining office hours in the evening and on weekends, involving the families of students when holding financial aid events, and participating in transition programs with local high schools. Learn more about the College Board study.