SCASFAA Legislative Relations Update

 (GEN-15-02) Subject: 2015-2016 Federal Pell Grant Payment and Disbursement Schedules
http://ifap.ed.gov/dpcletters/GEN1502.html
Summary: The attachments to this letter contain the 2015-2016 Award Year Federal Pell Grant Program Payment and Disbursement Schedules.

(GEN-15-03) Subject: Wind-down of the Federal Perkins Loan Program
http://ifap.ed.gov/dpcletters/GEN1503.html

Summary: This letter provides information on the wind-down of the Federal Perkins Loan Program and schools’ limited authority to continue to make loans to certain students beyond September 30, 2015.

 (GEN-15-04) Subject: Statement of Policy for Nonprofit College Access Organizations Presumed to Qualify as Additional Designated Entities Under the FAFSA Completion Initiative
http://ifap.ed.gov/dpcletters/GEN1504.html

Summary: This letter announces the criteria under which nonprofit college access organizations are presumed to qualify as designated entities eligible to receive FAFSA® Filing Status Information under the FAFSA® Completion Initiative.

(GEN-15-05) Subject:  2015-2016 Unusual Enrollment History Flag
http://ifap.ed.gov/dpcletters/GEN1505.html

 (General) Subject: Application and Verification Guide [2015-2016 Federal Student Aid Handbook] http://ifap.ed.gov/eannouncements/020915AVGAvailability1516.html

On Campus, Obama Makes Case for Plans Including Free Community College
http://www.nytimes.com/2015/02/07/us/politics/on-campus-obama-makes-case-for-plans-including-free-community-college.html?_r=1
President Obama discussed free community college plan funding and what would be required of students who participated.

Why your Facebook friends could scupper a student loan
http://www.theguardian.com/education/2015/feb/09/facebook-friends-student-loan-finance-earnings
The article provides data from the UK about student loan corporations who are beginning to look at Facebook friends as a predictor of defaulting on loans. 

U.S. Cuts Off Student-Loan Collectors for Misleading Debtors
http://www.bloomberg.com/news/articles/2015-02-28/u-s-cuts-off-debt-collectors-for-misleading-student-borrowers
There are six services that the DOE claims were misleading students and not offering Income Based Repayment plans.  Navient is the focus of the article, because they are the biggest (formally a part of Sallie Mae).

 'Bill of Rights' for Student Borrowers
https://www.insidehighered.com/news/2015/03/10/obama-administration-will-create-student-loan-complaint-system-centralized-payments
“In remarks at the Georgia Institute of Technology, President Obama discussed what White House officials have dubbed a Student Aid Bill of Rightsthat includes a series of executive actions aimed at helping the growing share of Americans who owe student loans held by the federal government.” The full memo can be found at https://www.whitehouse.gov/the-press-office/2015/03/10/presidential-memorandum-student-aid-bill-rights. The following are some highlights copied from the memo that describe what the Department of Education would do:

·        Develop and implement a simple process for borrowers to file complaints regarding Federal financial aid

·        Provide data from the complaint system to other enforcement agencies

·        Publish a report summarizing and analyzing the content in and resolution of borrower complaints and feedback received through the process.

·        Require all Federal Direct student loan servicers to provide enhanced disclosures to borrowers and strengthened consumer protections and  shall include disclosures to borrowers regarding loan transfers from one servicer to another and notifications when borrowers become delinquent or have incomplete applications to change repayment plans.

·        Direct all Federal Direct student loan servicers to apply prepayments to loans with the highest interest rate to ensure consistency across servicers, unless otherwise instructed by borrowers.

·        Give borrowers the opportunity to authorize the Internal Revenue Service to release income information for multiple years for the purposes of automatically determining monthly payments under income-driven repayment plans.

·        Establish a centralized point of access for all Federal student loan borrowers in repayment, including a central location for account information and payment processing for all Federal student loan servicing, regardless of the specific servicer.

·        Implement actions to ensure that the debt collection process for defaulted Federal student loans is fair, transparent, charges reasonable fees to defaulted borrowers, and effectively assists borrowers in meeting their obligations and returning to good standing.

·        Develop a plan to identify Federal student loan borrowers who receive Social Security Disability Insurance (SSDI) and determine which beneficiaries qualify for a total and permanent disability discharge of their student loans under the Higher Education Act of 1965.

·        Stop collection on qualified borrowers in order to ensure that SSDI benefits are not reduced to repay student loans that are eligible for discharge.

 

Sincerely, 

 

SCASFAA Legislative Relations Committee

Jenny Beakley
Financial Aid Counselor
Clemson University
G-01 Sikes Hall
Clemson, SC 29634-5123
864-656-2280