Newsbriefs

 

• Subsidized/Unsubsidized Reallocations On/After July 1, 2010
• What's New on IFAP
• James Madison University Earns National Financial Literacy Leadership Award
• Compliance Corner

 

SUBSIDIZED/UNSUBSIDIZED REALLOCATIONS ON/AFTER JULY 1, 2010
On May 10, 2010, NCHELP issued an updated “Direct Loan Transition School Q&A” that included eight new Q&As. The third Q&A gives new requirements for handling reallocations on/after July 1, 2010, and will change how NSLP processes reallocations.

• Q3. If a FFELP Stafford loan is first disbursed prior to July 1, 2010, and later a reallocation of funds is needed, is this allowed?
  
• A3. Yes. A reallocation between the subsidized and unsubsidized loans may take place on or after July 1, 2010, if both the subsidized and unsubsidized loans were first disbursed before July 1, 2010, and both of those loans stand (were not canceled but rescheduled and disbursed prior to July 1, 2010). No, such a reallocation may not take place on or after July 1, 2010, if the Stafford loan first disbursed was only a subsidized loan or only an unsubsidized loan.

NSLP has always allowed reallocations when only the subsidized or unsubsidized loan exists on the guaranty system. Beginning July 1, 2010, guaranty agencies can no longer guarantee or add new loans for completion of reallocations even if the new loan was disbursed prior to July 1, 2010.

NSLP is currently and will continue to be able to process reallocations between subsidized and unsubsidized loans if both loans exist on the guaranty system and were guaranteed and disbursed prior to July 1, 2010.

If you have any questions, please contact NSLP Customer Service at 800.735.8778 ext. 6833 or at nslpcs@nslp.org.     

 

WHAT'S NEW ON IFAP

The Department of Education has released the following information since the last Newsbriefs edition:

 

Campus-Based Awards

• 2010-05-06 Subject: Notification of Campus-Based Funding for the 2010-2011 Award Year

 

Dear Colleague Letters

• 2010-05-05 (ANN-10-17) Subject: Training Recording - Professional Judgment, Session One: An Overview
• 2010-05-24 (ANN-10-20) Subject: EDExpress Online Training - Release of First EDExpress Online Training for 2010-2011 Module
• 2010-05-25 (ANN-10-22) Subject: Live Internet Webinar - Direct Loan Questions and Answers
• 2010-05-25 (ANN-10-21) Subject: Webinar Recordings - Year-Round Pell Grant Webinar for Term-Based Schools and Year-Round Pell Grant Webinar for Clock-Hour/Non-Term Schools

 

Electronic Announcements

• 2010-05-07(Application Processing) Subject: 2010-2011 SAR Comment Codes and Text Guide (May 2010 Update)
• 2010-05-07 (COD System) Subject: COD Processing Update
• 2010-05-18(Campus-Based) Subject: Federal Perkins Loan Default Reduction Assistance Program (DRAP)
• 2010-05-21(General) Subject: Update on the use of Professional Judgment by Financial Aid Administrators
• 2010-05-21- (Grants) Subject: 2009-2010 National SMART Grant Deobligation Due to No Corresponding Pell Grant Warning Message
• 2010-05-24(General) Subject: 2010 Federal Student Aid Conference
• 2010-05-24(Loans) Subject: Direct Loan and FFEL Interest Rates Effective July 1, 2010

 

Federal Registers

• 2010-05-19 Subject: Civil Legal Assistance Attorney Student Loan Repayment Program

                

Federal Student Aid Handbook

•  2010-03-18 Errata and Updates for 2009-2010 FSA Handbook (UPDATED May 14, 2010)

                      

Loan Purchase Program Electronic Announcements

• Loan Purchase Program Electronic Announcement #86 Subject: The Department of Education has issued guidance on closing dates for the 2009-2010 PUT and Participation Programs.  

 

Perkins Cohort Default Rates (Orange Book)

• 2010-05-06 Subject: Federal Perkins Loan Program Status of Default as of June 30, 2009 (Orange Book)

 

SAR Comment Codes and Text

• 2010-05-07 Subject: 2010-2011 SAR Comment Codes and Text Guide (May 2010 Update)

 

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JAMES MADISON UNIVERSITY EARNS NATIONAL FINANCIAL LITERACY LEADERSHIP AWARD
James Madison University in Virginia is this year’s winner of NSLP's Financial Literacy Leadership Award. The award recognizes higher education institutions that provide outstanding financial literacy education to their students. It was presented to Donna Harper, Executive Assistant to JMU President Dr. Linwood Rose, at a ceremony on May 20. Read more. 

 

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Compliance Corner

Compliance Corner is a recurring feature highlighting recent questions from schools and lenders. Read what your colleagues are asking, and find answers to questions you may have.

Q. I have a question regarding TEACH Grants. What happens if a TEACH Grant recipient acquires a degree in a field that at the time of receiving the TEACH Grant was designated as a high-need field but is no longer designated as such?

A. Effective July 1, 2010, the Higher Education Opportunity Act (HEOA) of 2008 adds a new provision to the HEA to allow a recipient of an initial TEACH Grant who has acquired an academic degree, or expertise, in a field that was, at the time of the recipient’s application for the grant, designated as high-need, but is no longer designated as high-need, to fulfill the service obligation associated with the TEACH Grant by teaching in that high-need field.

 

Questions or Comments?

If you have questions or comments, contact NSLP Customer Service at 800-735-8778,
ext. 6300 or e-mail nslpcs@nslp.org.

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NSLP is a private nonprofit guarantor of loans made under the Federal Family Education Loan Program. This publication is intended to provide NSLP's clients with current information on guarantor policies and procedures. The information is not intended to be legal advice. NSLP disclaims all responsibility for any claim arising from reliance on the information provided. Direct questions, copy requests or address changes to: NSLP Customer Service P.O. Box 82507, Lincoln NE 68501-2507 phone 800-735-8778, ext. 6300   402-475-8686 fax 402-479-6658  e-mail nslpcs@nslp.org

Editor: Christian Wilbeck

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