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today’s news for Thursday, September 30, 2021

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Edamerica. As a division of Edfinancial, we are solely dedicated to advancing student success. With services that include Contact Center Solutions, Student Engagement, Financial Aid Support, Default Prevention and Consulting, we support students from point of application through loan repayment. Visit www.edamerica.net to learn how we can make a difference for your students.

NEWS FROM NASFAA

The national cohort default rate for federal student loans that entered repayment in fiscal year (FY) 2018 dropped significantly, falling from 9.7% for loans that entered repayment in FY 2017 to 7.3% for FY 2018, according to data released by the Department of Education (ED) Wednesday. While the record-low figure is welcomed news, it's worth noting borrowers with federal loans were not making payments for the last six months of the 3-year window as the forbearance period was in place due to the coronavirus pandemic.

Student loan servicer Navient announced this week that it will end its contract with the federal government and transfer all borrowers it is responsible for to a new servicer, pending approval from the Department of Education’s (ED) Office of Federal Student Aid (FSA). Navient is currently the student loan servicer for about 6 million borrowers, all of whom will be transferred to Maximus, the current servicer for defaulted student loans, as Navient is the latest to exit the student loan servicing space. 

With a flurry of legislative activity the annual appropriations process is slated to keep the government operational throughout the weeks ahead with a short-term spending plan. The continuing resolution has been tossed around in recent days as a potential vehicle for other legislative priorities, like the debt ceiling, and is now slated to be advanced by both chambers before the onset of a government shutdown.

NASFAA UPDATES AND ANNOUNCEMENTS

The wait is over — NASFAA's Tax Transcript Decoder, updated for the 2022-23 award year, is now available. This visual guide can help the financial aid office quickly identify the correct tax transcript and tax return line items needed to complete the verification process. The Tax Transcript Decoder contains a color-coded sample 2020 IRS Form 1040 tax return and the corresponding tax return transcript. The Decoder also includes a sample Form W-2, cross-referenced with a W-2 Wage and Tax Statement, and information to help determine whether an individual filed Schedules 1, 2, and/or 3 for 2020. Take a look at the updated guide, and share with your colleagues.

If you were unable to join us for the September 15, 2021, Panel Discussion: Cohort Default Rates Webinar, the on-demand version is now available. You’ll have full access to the webinar archive and handout. If you attended the live event, you can still use your registration link to access the on-demand event and FAQ document. Order today

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