Category Archives: Financial Aid

House Reconciliation Bill to Include Student Loan Reform

House and Senate Democratic leaders announced yesterday that student loan reform will be included in a House budget reconciliation bill. The healthcare "fixes" and student loan legislation will be combined in the House, and then the reconciliation package will be sent to the Senate. The Democrats plan to hold a House vote on the healthcare reform bill recently passed by the Senate and send that bill to the President to be signed into law. Then both chambers would pass the reconciliation bill containing healthcare reform adjustments as well as student loan reform.
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Obama Donates Nobel Prize Money to Scholarship Funds

The White House announced yesterday that ten charities will share the $1.4 million award that comes with President Obama's Nobel peace prize. Six of the organizations he chose support students in higher education and five provide scholarships.
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Net Price Calculator Resources

Preparing to implement the Net Price Calculator requirement mandated by the Higher Education Opportunity Act of 2008? The 2010 NASFAA conference will provide sessions, including "Will the Real Net Price Calculator Please Stand Up: Data Requirements and Implementation Issues" and a possible pre conference event. There are other great resources too, such as a video demonstration of the Department of Education's template, and the Association for Institutional Research's FYI, including a time line and additional resources.
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2010 Regional Direct Loan Training Hawaii, St. Louis and Chicago Conference Registration Closing

The Department of Education reminds schools that registration for the Hawaii, St. Louis and Chicago Regional Direct Loan Training Conferences will close on Wednesday, March 17, and urges you to pre-register online to ensure your spot in this training event.
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Loan Bill Could Give President Obama Twin Win (Politico)

"Key Senate Democrats were resisting calls to insert the proposed overhaul of lending programs into the budget reconciliation bill with health care reform, Politico reports. "[But then] the Senate parliamentarian notified Democratic leaders that, in order to meet the reconciliation requirements, both the Senate health and finance committees would need to produce $1 billion in deficit savings each over the next 10 years ... With health care alone, the Health, Education, Labor and Pensions Committee would not be able to show the items within its jurisdiction save at least $1 billion. By inserting the education package, the committee would satisfy the reconciliation instructions."
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The Status of ARRA Education Funds (Ed Money Watch)

"Last we looked at U.S. Department of Education data on the obligation and disbursement of these funds in September, things were moving a bit slow. Six months later, it appears that while some funds have gone out quickly, others continue to lag," Ed Money Watch reports. "Almost all of the currently available Pell Grant funds (about half of the total obligation) have been disbursed to the states for use. This is not surprising because Pell Grants are automatically distributed via a formula to students that qualify for the grants."
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Nelnet’s $660M Deal Sold At 3-Mo Libor+85bps – Source (Dow Jones Newswires)

"Nelnet Inc. has sold a $660 million student loan-backed deal, according to a person familiar with the matter," Dow Jones Newswires reports. "The sale of such asset-backed deals after the effective end of a Federal Reserve program to boost this market, is a sign of recovery. The Fed stepped in with offers of low-cost nonrecourse loans for investors to buy newly created consumer loan-backed deals in March last year, after investors grew wary of collateral backing the bonds and refused to purchase any."
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ED Releases Performance Results on Direct Loan Servicers

Yesterday afternoon, the Department of Education released the first of what will be ongoing quarterly customer service performance results for the four new federal loan servicers. The Department awarded loan servicing contracts to PHEAA, Great Lakes, Nelnet, and Sallie Mae in June 2009 to provide additional servicing capacity for loans purchased by the Department through the Ensuring Continued Access to Student Loans Act (ECASLA). Beginning in July 2010, the Department will allocate new loan servicing volume among the four servicers based on how they score in five performance areas. The Department found no differences between the servicers' default prevention efforts and statistically insignificant differences between the servicers' customer service scores.
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New Repayment Challenge for Some Student Loan Borrowers

The Ensuring Continued Access to Student Loans Act (ECASLA) successfully prevented any disruption in student loan access, but now it is making it more difficult for some borrowers to keep track of their loans. This is because a student with pre-ECASLA and post-ECASLA loans has to repay each loan separately, even if both loans have the same loan servicer. If this same student's school switches to the Direct Loan program and the student is disbursed a Direct Loan, this student will have to make three separate payments. Even if all three loans are serviced by the same loan servicer, the student will have to make three separate payments unless he or she consolidates the loans.
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Loan Servicing Information – First Quarter Customer Service Performance Results

In early September 2009, the Department began assigning FFEL Purchased Loans to the four new servicers on our federal loan servicing team -- FedLoan Servicing (PHEAA), Great Lakes Educational Loan Services, Inc., Nelnet, and Sallie Mae. The Department will annually measure servicer performance in the areas of customer satisfaction and default prevention, and will then use these results to determine each servicer's allocation of future loan volume. This announcement shares first quarter (October 2009 to December 2009) service performance results with the financial aid community.
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