Today's News for
Friday, May 17, 2013
Effective default prevention results at an economical cost. We
contact delinquent borrowers through a continuous, persistent
communication plan that encourages action on the borrower's part to
resolve the delinquency. We also communicate with in-school
borrowers encouraging wise borrowing, financial literacy and
accountability. For more information, visit BorrowWisely.org.
NEWS FROM NASFAA
Market-Based Student Loan Interest Rate Bill Passes House Committee
The Committee on Education and the Workforce approved the Smarter Solutions for Students Act (H.R. 1911) Thursday by a vote of 23-15. All committee Republicans present voted in favor of the bill, as did two Democratic representatives. The bill would institute a variable, market-based interest rate on federal student loans, excluding the Perkins loan, with a cap at 8.5 percent for Stafford loans and 10.5 percent for PLUS loans. The committee also approved the Improving Postsecondary Education Data for Students Act (H.R. 1949. The full House is expected to vote on both bills in the coming weeks.
The Department of Education (ED) released interim final
rules, a Dear Colleague Letter, and an Electronic
Announcement related to the 150 percent subsidized loan limitation,
effective for new borrowers on or after July 1, 2013. As part
of the law that extended the 3.4 percent interest rate for Direct
Subsidized Loans until July 1, 2013, a new borrower on or after
July 1, 2013 becomes ineligible to receive additional Direct
Subsidized Loans if the period during which the borrower has
received such loans exceeds 150 percent of the published length of
the borrower's educational program.
NASFAA has released an updated summary matrix which incorporates the two most recently released RADD reports. The matrix highlights points of alignment between the policy themes of RADD grantees, and is not intended to be a comprehensive analysis of the RADD reports released by the 16 organizations, but rather attempts to capture common themes for reform and review of the financial aid programs. We encourage members to read each full report and hope these resources will help further discussions on reimagining the design and delivery of student aid.
One feature of NASFAA's AskRegs Knowledgebase, which provides
answers to regulatory and compliance questions submitted
by financial aid administrators, is the ability for a
NASFAA member to subscribe to individual Knowledgebase articles
viewed in order to receive any updates to those articles.
Occasionally, NASFAA updates articles due to changes in the law or
regulations or clarifications of U.S. Department of Education (ED)
guidance. By clicking "Subscribe" at the bottom of each article,
the member will receive an immediate email notification if and when
an article is updated.
Ante up! Las Vegas is the gambling capital of the U.S. with 122 reported casinos in the city. The Aria Resort and Casino, where NASFAA's 2013 National Conference is being held in July, features a variety of slot machines, table games, and poker tables for guests to enjoy. NASFAA wants to know: What is your favorite casino activity? Vote in our Facebook poll and see how your colleagues answered!
U.S. DEPARTMENT OF EDUCATION
EDExpress for Windows 2013-2014, Release 3.0 has been posted on the Department’s Federal Student Aid Download Web site. Release 3.0 implements new functionality enabling you to set up and generate the Financial Aid Shopping Sheet for your students.
On July 6, 2012, the Moving Ahead for Progress in the 21st Century Act (MAP-21) (Public Law 112-141) was enacted. MAP-21 added a new provision to the Direct Loan statutory requirements (see HEA section 455(q)) that limits a first-time borrower’s eligibility for Direct Subsidized Loans to a period not to exceed 150 percent of the length of the borrower’s educational program.
This letter provides additional information on Federal Pell Grant Duration of Eligibility provisions of the HEA and the use of Lifetime Eligibility Used in its implementation.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. chapter 3501 et seq.), ED is proposing a revision of an existing information collection.
The Secretary amends the William D. Ford Federal Direct Loan Program (Direct Loan Program) regulations to reflect changes made to the program by the Moving Ahead for Progress in the 21st Century Act (MAP-21), Public Law 112-141.
"Federal investigators are probing whether a former top
Education Department official violated the law by allegedly sharing
information inappropriately about new regulations with an advocacy
group he founded," the Wall Street
"U.S. Senate Democrats [Wednesday] called for a two-year
postponement of a scheduled increase in the interest rate charged
on education loans to millions of college
students," Bloomberg reports.
"The days of fixed-rate student loans could be coming to a
close, with House Republicans on Thursday advancing a proposal that
would link rates to financial markets," The Washington
"...Arkansas doesn't have a host of professional schools. It
lacks a school for dentistry, optometry, and veterinary studies to
name a few...Without having an institution to attend in-state for
the missing programs, the Arkansas Department of Higher Education
[ADHE] reached compact agreements with schools in the southeast to
save 'slots' for Arkansas students in their
programs," KARK 4 News reports.
"For several years, I have watched the higher education
community engage in hand-wringing over strategies for improving the
educational outcomes for low- and moderate-income students. At
present, low-income students remain less likely to enroll and
complete college, when compared to their higher-income
peers," Michelle Asha Cooper writes in The Huffington
"We like to view higher education as the "great equalizer" that
leads to social mobility. But selective colleges have long been
accused of perpetuating class divides, rather than blurring
them," Josh Freedman writes in The Atlantic.
NASFAA CAREER CENTER
- Financial Aid Leader, Paul Mitchell the School Dallas, Carrollton, Texas
- Director, Student Finance, Education Corporation of America, Boston, Massachusetts
- Financial Aid Analyst, West Coast University, Irvine, California