Today's News

Today's News for Friday, May 17, 2013 
 
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Borrow Wisely: 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.

ED Releases Guidance on 150 Percent Subsidized Loan Limitation

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 Adds Last Two RADD Reports To Summary Matrix

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.

Subscribe to NASFAA AskRegs Knowledgebase Articles!

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. 

Vote: What Is Your Favorite Casino Activity?

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

5-16: Availability of EDExpress for Windows 2013-2014, Release 3.0

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.

5-16: 150 Percent Direct Subsidized Loan Limit: Electronic Announcement #1 - Interim Final Regulations Published

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.

GEN-13-14: Federal Pell Grant Duration of Eligibility and Lifetime Eligibility Used

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.

FEDERAL REGISTER

Comment Request: Direct Loan, FFEL, Perkins and TEACH Grant Total and Permanent Disability Discharge Forms

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.

Comment Request: William D. Ford Federal Direct Loan Program

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.

HEADLINES

National News

Former Education Official Faces Federal Investigation

"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 Journal reports.

Senate Democrats Urge Delay In Student Loan Rate Increase

"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.

Republicans Move Forward With Student Loan Plan That Could Mean Higher Rates Later

"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 Post reports.

State News

Arkansas: Financial Aid for Thousands Of Students Unfunded Due To State Budget Cuts

"...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. 

Opinions

Opinion: Invest in the Success of Low-Income Students

"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 Post.

Opinion: Why American Colleges Are Becoming A Force For Inequality

"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.

INDUSTRY NEWS

NASFAA CAREER CENTER

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