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VOL. 25, NO. 7L
January 2008
Welcome to the January 2008 ISAC Update for lenders and servicers, which is a compilation of e-Messages sent through College Zone’s e-Messaging service throughout January. 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
- Denise Cannon, 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
Summary of January 25th Commission Meeting
Sent to Marketing News, Announcements and Operational Updates, Announcements on January 28, 2008 The following is a summary of action taken at Friday's meeting of the Illinois Student Assistance Commission (ISAC), impacting our lender and servicer partners. Details regarding several of the topics discussed are provided in the January 25th Agenda Book, which can be accessed from the ISAC's Governing Board: The Commission page within the e-Library at collegezone.com.
Partial Payment of Federal Default Fee for 2008-09 Approved - Agenda Item 10
For the 2008-09 academic year, ISAC will continue to pay 50% of the federally-mandated default fee for ISAC-guaranteed loans, thus reducing the cost to students and parents of borrowing through the Federal Family Education Loan Program (FFELP). This borrower benefit is made possible using funds from the Student Loan Operating Fund (SLOF). ISAC will continue to encourage lenders to pay the other 50% of the default fee on behalf of borrowers. As a resource for students and parents who are FFELP borrowers, a List of ISAC's Participating Lenders (displayed in descending order of loan volume guaranteed through ISAC, and identifying which lenders have agreed to pay the other 50% of the default fee on behalf of borrowers) is available within the Student Zone at collegezone.com.
Proposed Rules Amendments - Agenda Item 14
Rules amendments are being proposed for the 2008-09 academic year to nine existing Parts, including Part 2720 [Federal Family Education Loan Program (FFELP)]. The full text of the proposed rules amendments and notices will be made available via the e-Library's ISAC Administrative Rules section, following publication in the Illinois Register. The anticipated effective date of these proposed rules amendments is July 2008.
Next Meeting
The next regularly scheduled Commission meeting is set for Friday, April 4, 2008 at University of Illinois at Springfield.
List of ISAC's Participating Lenders Available for FFELP Student Loan Borrowers
Sent to Marketing News, Announcements and Operational Updates, Announcements on January 24, 2008 As a resource for students and parents who borrow through the Federal Family Education Loan Program (FFELP), a List of ISAC's Participating Lenders [displayed in descending order of loan volume guaranteed through the Illinois Student Assistance Commission (ISAC)] is available within the Student Zone at collegezone.com.
There are several factors for borrowers to take into consideration when choosing a lender, such as whether a lender discounts or pays the federal loan fees, or if rebates or other special discounts are offered for making a series of consecutive, on-time payments. As a guarantor of federal student loans, it is ISAC's policy to pay half of the federally-mandated 1% default fee on behalf of the borrower. Lenders that have agreed to pay the other half of the default fee on behalf of the borrower are identified with an asterisk (*) on the List of ISAC's Participating Lenders.
Student loan borrowers should be encouraged to select lenders - whether from the list at collegezone.com or another source - based on which one(s) best meet their individual needs.
Commission Meeting to be Held Friday, January 25, 2008 - Executive Briefing Scheduled for January 28th
Sent to Marketing News, Announcements and Operational Updates, Announcements on January 16, 2008 The next regular meeting of the Illinois Student Assistance Commission is scheduled for 9 a.m. on Friday, January 25th at Loyola University in Chicago (Beane Auditorium, located on the 13th floor of Lewis Towers at 111 E. Pearson). Information regarding a subsequent Executive Briefing Conference Call is provided at the end of this message.
The tentative agenda for the meeting includes:
- FY2009 Monetary Award Program (MAP) Start-up Formula
- Adopted Rules - Veterans' Home Nurse Loan Repayment Program
- Proposed Rules and Amendments
- Partial Payment of Federal Default Fee for 2008-09 Academic Year
- Selection of College Illinois!(SM) Large-Cap Value Investment Managers
- FY2007 College Illinois!(SM) Prepaid Tuition Plan Annual Report
- Supplemental Sale of Student Loan Portfolio
- Mission Statement
Details regarding the FY2009 MAP start-up formula and the rules and amendments will be posted later this week within the ISAC's Governing Board: The Commission section of the e-Library at collegezone.com.
Results for items requiring action from the Commission will be available following the meeting via the 2008 Agenda Books page (located within the ISAC's Governing Board: The Commission section).
Executive Briefing Conference Call - January 28th
On Monday, January 28th, ISAC Executive Director Andy Davis will offer an Executive Briefing Conference Call to provide an overview of the January 25th Commission meeting and an update on other ISAC-related topics. The conference call, for financial aid staff at the Director or upper management level, will be held at 10 a.m.
To participate, dial 888.767.9380 and enter the passcode: 9767339#.
Revised Stafford and PLUS MPN Addenda and PLDs and New Addendum for Federal Consolidation A/PN Now Available
Sent to Marketing News, Announcements and Operational Updates, Announcements on January 11, 2008 A January 2008 Dear Colleague Letter (DCL FP-08-02) announces the availability of revised Master Promissory Note (MPN) addenda and Plain Language Disclosures (PLDs) for Federal Stafford Loans and Federal PLUS Loans, and a new Application/Promissory Note (A/PN) addendum for Federal Consolidation Loans. These revised documents explain the changes to loan terms and conditions that were made by the Higher Education Reconciliation Act of 2005 (HERA) and the College Cost Reduction and Access Act (CCRAA) of 2007.
Implementation of Revised Documents
Federal Family Education Loan Program (FFELP) participants should note the following:
- Use of the current Stafford and PLUS addenda and PLDs (which had been issued with DCLs FP-06-05 and FP-07-02) must be discontinued, and use of the revised addenda and PLDs should start as soon as possible. For more detailed guidance on the use of addenda and PLDs, program participants should continue to refer to DCL FP-06-05.
- Until revised Stafford and PLUS MPNs and a revised Federal Consolidation Loan A/PN are approved for use, the revised addenda must be used with the current promissory notes.
- The consolidation loan addendum must be provided to all borrowers who apply (or applied) for a consolidation loan on or after October 1, 2007. Current consolidation loan borrowers must be notified of changes to terms and conditions that may apply to their loan(s). [As explained in DCL FP-07-05, the approval of a revised Federal Consolidation Loan A/PN that included the HERA changes eliminated the need for the previous consolidation loan addendum. However, a new consolidation loan addendum is now required to explain the CCRAA changes to borrowers.]
Revised Documents Available at College Zone
The revised documents are now available for partners via the Order Materials area at collegezone.com.
Mark Your Calendar for Upcoming Important Dates
Sent to Marketing News, Announcements and Operational Updates, Announcements on January 3, 2008
The Illinois Student Assistance Commission (ISAC) would like to make you aware of the following information, which may be of interest to your student loan borrowers.
College Awareness & Preparation (CAP) Resources Available for 2008-09 FAFSA Cycle
Let students and their families know that the 2008-09 Free Application for Federal Student Aid (FAFSA) cycle, including FAFSA on the Web and Corrections on the Web, opened on January 1, 2008. Details regarding the 2008-09 application cycle are provided within the Applying for Financial Aid section of the e-Library.
Check out the College Awareness & Preparation (CAP) page at collegezone.com for information regarding resources that are available to help students complete the financial aid process. Several events, including FAFSA completion seminars, will take place across the State of Illinois from now through March. Encourage your student loan borrowers to attend the event that best fits their schedule.
CAP is a comprehensive effort of the Illinois Association of Student Financial Aid Administrators (ILASFAA), Inc., the Illinois Association for College Admission Counseling (IACAC) and ISAC. Formerly known as Financial Aid Admission/Awareness Month (FAAM), CAP strives to fulfill its mission through a series of workshops, seminars and statewide support with partners from all sectors of education in the State of Illinois.
January - February: FAFSA Expert Training
As was announced in December, "FAFSA Expert Training" & "Understanding Financial Aid Packaging" sessions are being held throughout the state in January and February. These free all-day sessions (9 a.m. – 3 p.m.) are designed to go beyond the basic line-by-line walkthrough of the FAFSA and delve into the more complex tax, asset, eligibility, and need analysis questions. Space is limited so register today!
January 25th: Commission Meeting
The next regularly scheduled meeting of the Illinois Student Assistance Commission will take place on Friday, January 25, 2008, at Loyola University in Chicago. A listing of tentative agenda items will be available prior to the meeting via the ISAC's Governing Board: The Commission section of the e-Library. Information can also be accessed by selecting the link that appears beneath the "Resource Center" heading at the College Zone home page.
Holiday Schedules
A complete listing of 2008 holidays on which ISAC staff will be unavailable is provided at the ISAC Events Calendar.
January 21st: Martin Luther King, Jr. Day
February 18th: Presidents' Day
In observance of the Martin Luther King, Jr. Day and Presidents' Day holidays, ISAC offices will be closed on Monday, January 21st and on Monday, February 18th, respectively. Our offices will reopen on the Tuesday following each holiday.
Loan records received at ISAC on the holidays, as well as disbursement records received at the National Disbursement Network (NDN), will be processed the following business day. This means that, for each holiday that falls on a Monday, CommonLine or Common Account Maintenance (CAM) files will be processed on the following Tuesday, with results available on Wednesday (or the next available day for any schools opting to receive NDN files on specific days of the week). Note that ELM Resources will continue to process and transmit files on the holidays.
For Assistance
Remember that you can access collegezone.com anytime, or send an e-mail message to ISAC's Lender Services Department. With the exception of holidays (such as those indicated above), ISAC staff will review and respond to messages during regular business hours (Monday through Friday, 8:30 a.m. - 5 p.m. CT).
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ISAC UPDATE
Electronic ISAC Update for December 2007 Available at College Zone
Sent on January 2, 2008 The December 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 December via College Zone's e-Messaging service.
Topics covered in the December 2007 ISAC Update include:
- Invoicing for ISAC Federal Default Fee - Instructions Available
(sent December 31, 2007)
- Happy Holidays from ISAC
(sent December 17, 2007)
- College Zone and Related Internet Applications Temporarily Unavailable on December 18th
(sent December 14, 2007)
- "FAFSA Expert Training" & "Understanding Financial Aid Packaging" - Register Now
(sent December 13, 2007)
- Electronic ISAC Update for November 2007 Available at College Zone
(sent December 3, 2007)
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