 |
VOL. 25, NO. 3L
September 2007
Welcome to the September 2007 ISAC Update for lenders and servicers, which is a compilation of e-Messages sent through College Zone’s e-Messaging service throughout September. This e-Messaging service has replaced ISAC's use of printed newsletters and special e-mail lists as our primary means of communicating information to you.
The articles in this Update have been organized according to the Lender Zone subscription groups to which the messages were distributed via College Zone’s e-Messaging service.
Questions?
Questions regarding information in this ISAC Update can be directed to Lender Services by sending an e-mail message to lenderservices@isac.org or calling 800.477.4411 and speaking with one of the following staff members:
- Sharon Bankston, extension 2826
- David Barinholtz, extension 2822
- Julie Henschel, extension 2823
On occasion, you may be directed to a specific contact person or area; when this occurs, we will provide the appropriate information in the individual article or message.
MULTIPLE SUBSCRIPTION GROUPS
Lender Participation in Default Fee Payment
Sent to Marketing News, Announcements and Operational Updates, Announcements on September 28, 2007 As a follow-up to last Friday's action by the Illinois Student Assistance Commission revising the default fee payment policy, ISAC staff will be reaching out to our lender partners with the aim of learning your plans for participation in sharing the payment of the default fee. The revised policy is effective for loan guarantees on or after December 1, 2007 for the remainder of the 2007-08 academic year. The communication to lenders is scheduled for early next week.
Once lender responses are received and compiled, a comprehensive list of participating lender partners will be created. Recognizing the immediate need for this information on the part of students and schools, the list will be available in mid-October on the College Zone Web site. An announcement will be made via this e-Messaging service when the list is posted. From that point forward, the information will be updated on a daily basis, or as new lender commitments are received.
We will continue to keep you informed as operational details are finalized.
Important Information from Commission Meeting
Sent to Marketing News, Announcements and Operational Updates, Announcements on September 24, 2007
Note: There is an Executive Briefing Conference Call scheduled for Wednesday, September 26th at 10 a.m. for exclusive discussion on Commission action regarding the federal default fee. All FFELP partners (schools and lenders) are encouraged to take part. Please take note of the call-in procedures listed below.
At its September 21st meeting, the Illinois Student Assistance Commission took action on the following items as part of the agenda.
Revised Federal Default Fee Payment Policy for 2007-08 Academic Year Approved
The Commission approved a revised policy effective for Federal Family Education Loan Program (FFELP) loans guaranteed on or after December 1, 2007. ISAC will pay one-half of the 1% federally-mandated default fee on behalf of the borrower only if the lender agrees to pay the remaining 50% of the fee. (Previously, ISAC has paid the entire fee on behalf of the student.)
This action has become necessary as a result of the passage by Congress, and the expected signing by President Bush, of the College Cost Reduction and Access Act of 2007 (CCRA). The CCRA, once signed by the president, has an effective date of October 1, 2007, and reduces a number of fees and payments made by the federal government to the student loan community.
In keeping with our commitment to make college affordable for Illinois students, ISAC will be paying the fee on the student's behalf by teaming with our own student loan lender, the Illinois Designated Account Purchase Program (IDAPP). IDAPP will be sharing the cost of the 1% fee on loans made by IDAPP once the new policy becomes effective. ISAC lending partners are being asked to join in this commitment and team up with ISAC to pay one half of the default fee as a means to ensure that students are able to retain this valuable borrower benefit. Taking our commitment to students further, the Commission has authorized issuing guarantees only when the student receives the full loan amount, with no deductions for the default fee.
Because this revision in our policy impacts not only our operations, but those of our school and lender partners as well, we are hosting an Executive Briefing Conference Call to discuss the policy and will use this e-Messaging service to provide regular information updates as the operational details are finalized.
Executive Briefing Conference Call for FFELP Participants
Executive Director Andy Davis will lead a conference call discussion of the revised policy for payment of the federal default fee approved by the Commission at Friday's meeting. The conference call, for FFELP partners at lending institutions and FFELP schools, will be held at 10 a.m., Wednesday, September 26th. To participate, dial 888.767.9380 and enter the passcode 9767339#.
Next Meeting
The next regularly scheduled Commission meeting is set for Friday, November 16, 2007, at the University of Illinois at Chicago.
Commission Meeting to be Held Friday, September 21, 2007
Sent to Marketing News, Announcements and Operational Updates, Announcements on September 12, 2007 The next regular meeting of the Illinois Student Assistance Commission is scheduled for 9 a.m. on Friday,
September 21st at College of DuPage in Glen Ellyn.
The tentative agenda for the meeting includes:
- 2007-08 Monetary Award Program (MAP) and Silas Purnell Illinois Incentive for Access (IIA) Program Payment Claim Deadline Dates
- 2007-08 Federal Default Fee
- College Illinois! Prepaid Tuition Plan Investment Report
- College Illinois! Prepaid Tuition Plan 2007-08 Contract Prices and Fees
- Supplement to the 2002 Indenture
- Amendment to Medium Term Credit Facility
- Illinois Designated Account Purchase Program (IDAPP) Quarterly Investment Report
- College Illinois! Capstone Loan Program
The results for items requiring action from the Commission, as well as a full description of each agenda item, will be available following the meeting via the 2007 Agenda Books page (which is located within the ISAC's Governing Board: The Commission section of the e-Library at collegezone.com).
There will be no Executive Briefing Conference Call following the September Commission Meeting.
Return to Top
MARKETING NEWS, ANNOUNCEMENTS
"The FAFSA Made Easy" & "Planning a Successful Financial Aid Event" Sessions - Register Now
Sent on September 11, 2007 The Illinois Student Assistance Commission (ISAC) will once again host a series of professional development opportunities designed to help high school counselors, community organization members, financial aid administrators and other professionals involved in assisting Illinois students and their families along the path to college. Counselor Professional Development Units can be earned at each session. All events are free and require online registration through collegezone.com.
We begin our series with "The FAFSA Made Easy" focusing on the intricacies of the 2008-09 Free Application for Federal Student Aid (FAFSA), student eligibility, and common mistakes. Developed as an intensive line-by-line review of the FAFSA, this training will place special emphasis on the dependency questions, financial aid worksheets, and eligible non-citizens. Several case studies, including the completion of a FAFSA, have been incorporated into this year's session.
In addition, based on feedback from high school counselors and community organization members, a second training opportunity, "Planning a Successful Financial Aid Event" has been added to "The FAFSA Made Easy." Participants may now attend an afternoon session designed to help with the planning, promotion, and execution of successful financial aid presentations or other college outreach events. Those new to outreach event planning will be provided with tips, tools, and techniques for everything from cost to marketing to logistics. Experienced counselors are also highly encouraged to attend to share ideas, advice and best practices.
These free sessions (9 a.m. – 3 p.m.) will be offered this fall at locations throughout the state. A list of locations is available in the Partner Training section within the e-Library at collegezone.com. Continental breakfast will be provided and onsite registration begins at 8:30 a.m.
Register online today.
We look forward to seeing you soon.
New Federal Updates Posted - State Legislative Update Also Available
Sent on September 11, 2007 Two new Federal Updates have been posted to collegezone.com. The first "The Latest Word from ISAC on...", dated September 7, 2007, is an update on the budget reconciliation process, as well as a summary of the final budget reconciliation bill - the College Cost Reduction and Access Act - that was passed by Congress on September 7, 2007. This bill increases college aid by nearly $20 million over the next five years (funded by cuts to the student loan programs) and includes $750 million in budget deficit reduction required by the budget reconciliation instruction passed earlier this year. This bill will now go to President Bush for signature.
The second "The Latest Word from ISAC on...", dated September 5, 2007, provides an update on the FFY08 Budget (annual appropriations) for the Department of Education. President Bush released his FFY08 Budget Request back in February, and the House and Senate have since introduced their respective spending bills for the Departments of Labor-Health and Human Services and Education (Labor-HHS-Ed). This update provides a summary and a side-by-side comparison of the higher education provisions included in the President's budget request and the House and Senate bills. The full House passed its Labor-HHS-Ed appropriations bill prior to adjourning for summer recess, but the Senate did not, and is not expected to begin work on its bill until some time in October. With the current fiscal year ending on September 30th, there is a strong possibility that Congress will have to pass a Continuing Resolution (CR) to these departments past that date.
These updates can be accessed through College Zone's
e-Library, #11, Federal Information.
State Legislative Update Available
A new State Legislative Update has also been posted for your reference at collegezone.com. This Update, dated
September 10, 2007, contains information regarding the impact of the recently finalized fiscal year 2008 State of Illinois operating budget (HB 3866) on ISAC's programs. Also included is the most recent status of the education bills which ISAC staff have been tracking throughout the legislative session.
The following are items of particular interest in this Update.
- The Governor used his total veto power to eliminate a $500,000 appropriation from the General Revenue Fund (GRF) for forensic science grants. He also used his reduction veto power to cut in half the appropriation from the state's GRF for the Bonus Incentive Grant (BIG) Program, reducing the appropriation from $650,000 to $325,000. These are the only two aspects of the ISAC budget that were vetoed.
- For all other ISAC programs, appropriations are generally at FY07 levels, with two significant exceptions:
- an additional $26.8 million have been appropriated from the state's GRF for the Monetary Award Program (MAP), to take the place of the FY07 contribution to MAP that was funded with proceeds from the sale of a portion of ISAC's student loan portfolio; and
- the MAP Plus Program has been eliminated.
- While ISAC received level funding for the Illinois Veteran Grant (IVG) Program, an additional $7.2 million have been appropriated to the Illinois Community College Board for community colleges for reimbursement for the IVG Program.
The State Legislative Update can be accessed through College Zone's e-Library, #13, ISAC Announcements, Press Releases & State Legislative Updates.
Return to Top
ISAC UPDATE
Electronic ISAC Update for August 2007 Available at College Zone
Sent on September 4, 2007 The August 2007 edition of the ISAC Update is now available for your review within the ISAC Publications section of College Zone's e-Library. This version of the monthly electronic ISAC Update is a compilation of e-Messages sent to lenders and servicers in August via College Zone's e-Messaging service.
Topics covered in the August 2007 ISAC Update include:
- ISAC Kicks Off 2007 Hispanic Heritage Month: Conducting a Financial Aid Presentation - in Spanish
(sent August 28, 2007)
- 2007-08 Professional Development Opportunities Offered by the Illinois Student Assistance Commission
(sent August 28, 2007)
- Mark Your Calendar for Upcoming Important Dates
(sent August 14, 2007)
- ISAC Business As Usual Despite State Budget Impasse - Held FY07 MAP Payments Being Released
(sent August 1, 2007)
- Electronic ISAC Update for July 2007 Available at College Zone
(sent August 1, 2007)
Return to Top
|
|
|
|
