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DJA May 2008 NewsletterThis newsletter is published monthly by Deborah John & Associates, Inc., 108 W. Main St., Mulvane, KS 67110. DJA can be reached at 1-800-242-0977 or at djainfo@gotdja.com. In addition, DJA publishes a quarterly newsletter, the DJA Outlook, click on the following link to view this in Adobe "PDF" format: spring08.pdf Also, this current edition of our newsletter is available in a "PDF" format--simply click on may08.pdf. Ensuring Continued Access to
Student Loans Act of 2008 (H.R. 5715) On May
7, 2008 President Bush signed into law the “Ensuring Continued Access to
Student Loans Act of 2008. The bill was
pushed through both the House and the Senate and signed into law within 35
days. The bill makes many changes to
the Title IV programs and addresses the student loan market as well. The following highlights critical portions
of the new law. Annual and Aggregate Stafford Loan Limits The following increase in loan limits are
effective for loans first disbursed on or after July 1, 2008: ·
Dependent
undergraduate students now qualify for an additional unsubsidized Stafford
annual loan limit of $2,000. ·
Independent
undergraduate students and dependent students whose parents are unable to
borrow a PLUS loan now qualify for an additional unsubsidized Stafford loan
limit of $2000. Prior to this bill, an
independent student or dependent student whose parent did not qualify for the
PLUS loan could borrow $4,000 in unsubsidized Stafford loans for the first
and second year. This will increase to
$6,000 for the first and second year.
Students who have completed their first two years will be able to
borrow $7,000 versus the current $5,000. ·
The
aggregate unsubsidized loan amount for undergraduate dependent students has
been increased from $23,000 to $31,000 (less what has been borrowed in
subsidized loans). ·
The
aggregate unsubsidized loan amount for undergraduate independent students has
been increased from $46,000 to $57,500 (less what has been borrowed in
subsidized loans) Dependent students whose parents are
denied a PLUS loan will only receive the additional unsubsidized loan of
$2000 for a total that can be borrowed of $6,000. They can not receive the additional
unsubsidized $2000 as a dependent student and then, because the PLUS was
denied, receive another $2,000. Changes to ACG & SMART Grants The following changes are subject to negotiated
rulemaking and are effective January 1, 2009:
Grace Period and Deferment For Parent PLUS Borrowers Beginning July 1, 2008, parents would be
allowed to defer payments on a PLUS loan until six months after the date the
student ceases to be enrolled at least half time. The parent borrower may
either pay the accruing interest monthly or quarterly, or be capitalized
quarterly. Special
Provision for Parents Delinquent on Mortgage Payments The law would allow lenders to consider
parents eligible for PLUS loans even if, during the period January 1, 2007,
through December 31, 2009, the parents are or were:
Suspension of Master Calendar and Negreg The USDE can implement all the provisions
of the law with the exception of the
ACG and SMART Grant programs without following the master calendar deadline
dates and without negotiated rulemaking.
The ACG/SMART Grant program regulations will be subject to negotiated
rulemaking. Other issues in the bill are Lender of
Last Resort Provisions; The USDE as a Secondary Market on loans; Prohibited
Inducements for Guaranty Agencies; Impact Study on College Costs and Federal
Coordination to ensure students and families have access to federal student
loans. 90/10 Requirements and Bill H.R. 5715 Of great
concern to many institutions is how the increase in unsubsidized loan funding
will effect their 90/10 calculations.
With additional federal funds being borrowed and therefore,
subsequently less private loans to put in the 90/10 mix some schools may no
longer meet the 90/10 requirement for Title IV aid. This issue is being discussed in the
Reauthorization of the Higher Education Act. DJA will keep you updated on
this very important issue. Calendar The next DJA webinar on General Participation Requirements will be held June 7, 2008 at 11:00 a.m. Central Time. Region V
Private Career Colleges and Schools Make plans to attend the annual Region V Private Career Colleges and Schools (PCCS) Workshop. This year's meeting in Bloomingdale, IL at the Indian Lakes Resort will be held from May 19-21, 2008. Deborah John, president of DJA, will be conducting several information sessions throughout the workshop. Monday May 19th, Deborah will be holding the session on Basic Financial Aid from 12:00-5:00 p.m. For information on additional sessions Deborah will be holding, as well as a complete agenda for the workshop visit the following website: http://www.region5and7pccs.com. DJA will also be an exhibitor. In addition, many USDE officials are on hand to discuss upcoming regulations for the next financial aid award year. For further information concerning the registration fees and hotel information, visit the website link provided above. You may also contact the PCCS Executive Director, Larry Prather at (316) 682-1838 or by email at larryprather@hotmail.com. Career College Association (CCA) Annual Convention The Career College Association will be holding its annual convention this year in Las Vegas at the Mandalay Bay Resort and Casino. The convention dates are June 25-27, 2008. The Convention will feature:
DJA will be exhibiting at Booth Number 633 and will have information available at this session for those institutions interested in using a 3rd party servicer (e.g. DJA) as well as information on EFAS (Electronic Financial Aid Servicing from DJA) and EFAS Express. To register for this convention, go to the CCA
web site at www.career.org. Upcoming
DJA Training & Exhibition Schedule. Also, this could be the time of year to evaluate your institution's financial aid administration needs. If your institution is interested in exploring what DJA can offer, please check out the following links on our Web site: EFAS
(Electronic Financial Aid Servicing from DJA Financial Aid Checklist -Will assist you in comparing your present method of financial aid administration to EFAS EFAS Express-The ability to utilize your internet connected PC with EFAS. IFAS (Internet Financial Aid Service)-Assisting schools with USDE internet requirements for accessing Title IV documentation. |
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