Lender Update

Welcome to the July 2004 ISAC Update for Lenders and Servicers, which is a compilation of e-Messages sent through College Zone’s e-Messaging service throughout July. While this e-Messaging service is currently being offered in addition to the printed ISAC Update newsletters, it will soon replace both printed newsletters and special e-mail lists as ISAC’s 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 800.899.ISAC (4722) and speaking with one of the following staff members:

• Sharon Bankston, extension 2826
• David Barinholtz, extension 2822
• Sondra Gardner, extension 2827
• 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.

Important Reminders: Testing Two-Way Transmission of Expanded CAM Loan Record Types, Report of Unreported Loans, Chat Event, and Holiday Processing Schedules
Sent to Marketing News, Announcements and Operational Updates, Announcements on July 21, 2004

Testing Two-Way Transmission of Expanded CAM Loan Record Types - Now Available

All lenders/servicers are encouraged to begin testing the two-way exchange of the following Common Account Maintenance (CAM) loan record types as soon as possible.  

• Record Type 07   Loan Period/Grade Level Change
• Record Type 09   Pre-Disbursement Change
• Record Type 10   Post-Disbursement Change/Notification
• Record Type 24   Loan Increase

The implementation of two-way transmission of these record types allows lenders/servicers to utilize the efficiencies of CAM to submit electronically many of the loan changes that have historically been submitted to ISAC manually. CAM files support two-way communication between trading partners to report events as they occur, resulting in more accurate and timely exchange of information.
 

Updates/corrections to Report of Unreported Loans Due – July 31st

The most recent NSLDS Lender Manifest Report of Unreported Loans is to be returned to ISAC no later than July 31, 2004, to coincide with the due date for the next required monthly submission of loan data. Loan status information reported by lenders and servicers is critical to maintaining current and accurate data within the National Student Loan Data System (NSLDS), which in turn is used for determining eligibility for student aid as well as cohort default rates for both lenders and colleges. More information regarding this process is provided at the Unreported Loans page within the Lender Zone's Processes section.
 

Student Loan Default Prevention Chat Event – August 10th

The next Mapping Your Future online Chat Event, “Student Loan Default Prevention,” will take place on Tuesday, August 10th from 2 to 3 p.m. (CT). Watch for more information to be posted to the Message Board on the Lender Zone front page as this date approaches.
 

Labor Day Holiday – September 6th

Due to the Labor Day holiday, ISAC offices will be closed on Monday, September 6, 2004, and will reopen on Tuesday, September 7th.

Loan records received at ISAC on September 6th, as well as disbursement records received at the National Disbursement Network (NDN), will be processed the following business day. This means that CommonLine or Common Account Maintenance (CAM) files received on September 6th will be processed on September 7th, with results available September 8th (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 September 6th.

College Zone is available 24 hours a day and 7 days a week - even when the ISAC offices are closed. Also, questions or inquiries may be submitted at any time by sending an e-mail message to ISAC's Lender Services staff. With the exception of holidays (such as Labor Day), ISAC staff will review and respond to messages during regular business hours (Monday through Friday, 8 a.m. - 5 p.m. CT).

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Governor Signs FY2005 Budget Into Law
Sent on July 30, 2004

Governor Blagojevich signed the fiscal year 2005 (FY2005) budget into law on Friday, July 30, 2004. The FY2005 budget provides for the administration of ISAC's programs for the upcoming year.

College Zone's ISAC State Legislative Updates page will be updated early next week to reflect bills signed by the Governor, including the public act number assigned to each. Be sure to periodically access the ISAC State Legislative Update, as well as Program News pages within the ISAC Gift Assistance Programs area, to follow the impact of the implementation of the budget and other new legislation affecting our programs.  

ISAC State Legislative Update:  General Assembly Passes State Budget
Sent on July 26, 2004

A July 26, 2004 ISAC State Legislative Update provides information regarding the fact that the Illinois General Assembly has adjourned, having agreed upon a budget plan for fiscal year 2005 (FY2005). All bills that have passed both houses, including the budget, are with Governor Blagojevich for action. The Governor is expected to take action on the budget within a few days since the current interim budget will expire July 31st. Please be aware that none of the items included in the budget are final until the Governor has acted.

As the Governor signs bills impacting student financial aid, including the FY2005 budget, we will continue to share information via the ISAC State Legislative Update. Be sure to periodically access College Zone's ISAC State Legislative Updates page, and the Program News pages within the ISAC Gift Assistance Programs area, to follow the progress of pending legislation.

Financial Aid Scam Warning Issued by the U.S. Department of Education
Sent on July 15, 2004

In an electronic announcement dated July 13, 2004, the U.S. Department of Education (ED) issued a warning regarding an individual or individuals calling students on the telephone and impersonating an ED staff member. The student is asked to provide bank account information so that the individual(s) can charge processing fees for "a program to replace student loans with an $8,000 grant." In reality, no such program exists, and students are not charged fees to receive Title IV federal grants. The electronic announcement includes steps that can be taken by students who have been impacted by this scam.

Students and families should never provide bank account numbers, or any other financial or personal information, to an unknown, unsolicited caller. Additional information regarding how to avoid scams is provided to students at College Zone's Financial Aid Scams page, as well as at the Federal Trade Commission's Scholarship Scams Web site.

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New Printed ISAC Update on the Way
Sent on July 9, 2004

A new printed ISAC Update (dated July 8, 2004) is on its way to lenders and servicers. The text of this ISAC Update is available for your review within the ISAC Publications section of College Zone’s e-Library.

Topics covered in the printed newsletter include:  

• Variable Interest Rates Effective July 1, 2004
• Reporting of Loan Data Critical
• More Timely Exchange of Loan Data via CAM
• Default Prevention Strategies to Benefit Your Students
• Updated Common Manual Now Available
• June Commission Meetings
• We're Here to Help You!
• Sign Up for e-Messaging Today!
• Something New
• Common Review Initiative Underway
• Become a Mapping Your Future Friend
• Fall Seminar Dates Set
• Defaulted Loan Payments Now Being Accepted Electronically

While College Zone’s e-Messaging service for lenders and/or servicers is currently being offered in addition to the printed ISAC Update newsletters, it will soon replace both printed newsletters and special e-mail lists as ISAC’s primary means of communicating information to you.

Encourage your colleagues to visit the College Zone Lender e-Messaging Sign-up page today, so that they won’t miss any future announcements or updates from ISAC.  

Electronic ISAC Update for June 2004 Available at College Zone
Sent on July 1, 2004

The June 2004 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 June via College Zone's e-Messaging service.

Topics covered in the June 2004 ISAC Update include:  

• Results of Special Meeting of the Illinois Student Assistance Commission: 2004-05 MAP Awards Impacted
• Illinois Student Assistance Commission: Announcement of June 29th Special Meeting, and Highlights from June 11th Meeting
• Important Dates and Reminders: Guidelines for FFELP Industry Practices, New Student Loan Interest Rates, and Independence Day Holiday
• Student Loan Consolidation Chat Event - June 8, 2004
• Electronic ISAC Update for May 2004 Available at College Zone

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