By Vesta Smith-Campbell. Updates for 2010-11 ◦ Elimination of the FFELP system by 2010-11 ◦ New Perkins Loan Program ◦ Truth-In Lending Act ◦ New FAFSA.

By Vesta Smith-Campbell

Updates for 2010-11◦ Elimination of the FFELP system by 2010-11◦ New Perkins Loan Program◦ Truth-In Lending Act ◦ New FAFSA Features◦ Two consecutive Scheduled Pell Awards◦ Survivors of Service Members◦ Readmission of active duty service members◦ Direct Loan Program◦ Regulatory Exposure◦ Net Price Calculator

HERA (2006) reauthorized student loans through 2012 – eliminated special allowance for FFEL lenders (Proposed elimination of FFELPJune 30, 2010)

ECASLA (2008) Authorized the Secretary to purchase FFEL loans. Added additional $2,000 unsub eligibility.

September, began assigning FFEL loans to: FedLoan Servicing (PHEAA), Great Lakes Educational loan Services, Inc., Nelnet, and Sallei Mae.(1st customer survey, December 2009)

Proposed last day for Perkins loan (old) June 20, 2010.

Use existing systems. ED responsible for making, servicing, and collecting new Perkins loans.

Terms and conditions similar to unsub loans.

5% interest rate, annual and aggregate loanlimits and school-match requirements remain the same.

ED and Federal Reserve system require Self-certification form for private loans. Draft copy 12/09 (see sample self-certification form)

Authorized ACG and National SMART and budget relectes a proposed increase for 2010, but administration indicated no plans to extend programs beyond June 30, 2011.

Students see graduation rates, and info about colleges listed on FAFSA.

Option to import tax information from IRS (pilot in 2009-10 and fully operational in 2010-11)

Tax information not available until after April 15th

Blue FAFSA on WEB address change to

www.fafsa.gov

ISIRS now include retention rates, graduation rates, and transfer rates along with estimates of Pell, ACG, and loans.

2010-11 Must be making grade level progression. (focus on achievement)

Use of COD additional eligibility indicator to process second Pell.

Duration of limited to 9 scheduled awards (dollars not terms).

Civil commitment for forcible or non forcible sexual offense not eligible for Pell

Parent or guardian died as a result of military service in iraq or afghanistant after 9/11/2001.

Must be less than 24 or enrolled in postsecondary program when parent died.

If eligible for Pell already can be reduced to 0

If not eligible for Pell then eligible for Iraq and Afghanistan Service Grants. Grant is equal to maximum Pell Grant.

To take away barriers for vets returning from active duty.

Website for Schools www.dl.ed.gov/schools Website for students www.dl.ed.gov Fully operational with 5 servicers Continued use of servicers based on service

levels to borrowers, schools, education, borrower defaults, and ongoing program compliance reviews.

All borrower’s loans (DL & FFEL) held by one servicer.

Top 10 Findings Consumer information

◦ Verified on PPA Plan to combat copyright infringement Compliant preferred lender list Private loan disclosures Code of Conduct

◦ Tracking of students going on to graduate school.◦ Copyright policies and sanctions (new)◦ Preferred Lender arrangements (new)◦ Drug and alcohol policies (revised)◦ Completion/graduation rates (revised)◦ Campus Crime and Security (revised)

NASFAA Free Webinar January 27, 2010 Net Price Calculator Template Can use template or develop a customized

version containing the same elements. http://npc.inovas.net/institution/