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VOL. 22, NO. 12L
May 2005
Welcome to the May 2005 ISAC Update for Lenders and Servicers, which is a compilation of e-Messages sent through College Zone’s e-Messaging service throughout May. 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 800.899.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.
MULTIPLE SUBSCRIPTION GROUPS
FFELP Processing News, Updates, and Reminders, and Holiday Schedules
Sent on May 25, 2005 Revised Stafford and PLUS Guides Available for Order
Revised versions of ISAC's Federal Stafford Loan Guide (A Guide for Financing Your College Education) and Federal PLUS Loan Guide (Helping Finance Your Children's Education) - each with a brand-new design and updated text - are available for order. Use the easy ordering option through College Zone to obtain your supply of these brochures, which explain the Stafford and PLUS loan programs. These are the first publications in a new design series being introduced for all of ISAC's loan materials, including the Default Prevention pieces. As more new pieces become available, we'll let you know. In the meantime, be sure to update your current inventory stock with the new loan guides.
Guidance from ED
Loan Consolidation
Dear Colleague Letter (DCL) FP-05-05, dated May 2005, provides guidance from the U.S. Department of Education (ED) regarding questions related to the determination of consolidation loan interest rates under the Federal Family Education Loan Program (FFELP), and clarifies the early repayment option available to borrowers under Section 428(b)(7) of the Higher Education Act of 1965, as amended. DCL FP-05-05 is available online as a PDF file at the National Council of Higher Education Loan Programs (NCHELP) e-Library, which can be accessed via the Lender Quick Links menu at collegezone.com. Also included are answers to questions previously submitted to ED by NCHELP.
Remember that ISAC is here to provide you with consolidation guarantees. With the upcoming implementation of electronic consolidation guarantees (see below), processing consolidation loans through ISAC will be easier than ever.
Late Disbursements
ED's November 1, 2002 Cash Management Regulations were previously amended to state that, on an exception basis and with ED approval, an institution may make a late disbursement after the applicable 120-day period, if the reason the late disbursement was not made within the 120-day period was not the fault of the student. An April 2005 Dear Colleague Letter (DCL GEN-05-07) explains the new requirements and procedures for requesting approval to make a late disbursement of Title IV funds beyond the 120-day late disbursement period.
ISAC to Begin Processing Electronic Consolidation Loan Records (CAM Record Types 17 and 20)
We are pleased to announce that, starting this summer, ISAC will begin processing Federal Consolidation Loan guarantees electronically via Common Account Maintenance (CAM). Electronic processing saves time and potential errors associated with manual data entry and associated processes, and results in quicker response time for consolidation loan guarantee requests.
CAM record types 17-Consolidation Loan Notification and 20-Consolidation Demographic Information will be implemented, with the G-date set for July 15, 2005. Certification testing will be required for all lenders/servicers wishing to transmit these record types electronically.
Lenders/servicers interested in setting up CAM Certification Testing for record types 17 and 20 should contact Sharon Bankston, ISAC Lender Services Representative, by calling toll free at 800.899.4722 (extension 2826) or sending an e-mail message to lenderservices@isac.org.
Change in DAAR Refile Policy
Remember that, effective July 1, 2005, ISAC will require lenders to refile rejected Default Aversion Assistance Requests (DAAR's) by the 150th day of delinquency on the applicable loan. The effective date of this policy change will coincide with the July 1st publication of the 2005 Common Manual: Unified Student Loan Policy, where the DAA time frames for all 36 guarantors are published in Chapter 11, Figure 11-4. Further details regarding ISAC's aversion assistance time frames are provided within the Lender Zone's Default Prevention/Aversion Assistance section.
Upcoming Holiday Processing Schedules
The following information is being shared to help you plan processing of FFELP loans over the next few months.
May 30th – Memorial Day Holiday
In observance of Memorial Day, ISAC offices will be closed on Monday, May 30th and will reopen on Tuesday, May 31st.
Loan records received at ISAC on Memorial Day, 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 May 30th will be processed on May 31st, with results available June 1st (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 May 30th.
July 4th – Independence Day Holiday
In observance of Independence Day, ISAC offices will be closed on Monday, July 4th and will reopen on Tuesday, July 5th.
Loan records received at ISAC on July 4th, as well as disbursement records received at the NDN, will be processed the following business day. This means that CommonLine or CAM files received on July 4th will be processed on July 5th, with results available July 6th (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 July 4th.
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MARKETING NEWS, ANNOUNCEMENTS
ISAC and Tax Assistance Program Invite You to 2005 Financial Aid Conference on May 12, 2005
Sent on May 4, 2005
You are invited to attend the 2005 Financial Aid Conference hosted by the Tax Assistance Program (TAP), a community-based organization in Chicago. The event on May 12th will feature John Jennetten, Chief Program Officer at the Illinois Student Assistance Commission (ISAC), as a keynote speaker and will also feature a variety of state and local leaders, along with area high school guidance counselors and financial aid administrators.
For the past ten years, TAP has provided free tax preparation service to the working poor every Saturday from January through April at 20 locations in the greater Chicago metropolitan area. Since 2002, ISAC has been partnering with TAP to also provide Free Application for Federal Student Aid (FAFSA) completion services as part of the TAP Lifetime Learning Financial Literacy Program. In 2005, 1700 tax preparation volunteers were also trained to assist with completion of the FAFSA. More than 50 additional volunteers received "expert" training and agreed to act as coordinators at each site, and ISAC staff was available every Saturday to answer the most complex questions. The result was an extremely successful year. More than 1200 individuals filed a FAFSA after completing a tax return. Additionally, initial application data for the 2005-06 processing year indicates that timely application volume has increased by nearly 17% in areas where a TAP site existed.
To hear more about this year's success as well as plans for 2006, please plan to attend the Tax Assistance Program's 2005 Financial Aid Conference on Thursday, May 12th from 1:30 - 3:00 pm in their offices at the Sears Tower, Suite 9100, in Chicago. Reservations are required and can be made by calling 312.466.0771.
For more information on the Tax Assistance Program, or to volunteer for next year, visit their Web site at www.taxassistance.org. You may also access the Tax Assistance Program Web site via the Quick Link that is located in the right margin of your Zone's front page at collegezone.com.
Student Loan Consolidation, Forgiveness, Cancellation, and Discharge Chat Event - May 10, 2005
Sent on May 3, 2005
Lenders and Servicers: Please share the following information with your student loan borrowers.
On Tuesday, May 10, 2005, Mapping Your Future will offer a "Student Loan Consolidation, Forgiveness, Cancellation, and Discharge" chat from 6 to 7 p.m. (CT). The chat is designed to help students who are interested in managing student loan debt.
During this "Student Loan Consolidation, Forgiveness, Cancellation, and Discharge" Chat Event, participants will learn about:
- the advantages and disadvantages of loan consolidation;
- how students can determine if loan consolidation is the best option for them;
- eligibility requirements for consolidation, forgiveness, cancellation, and discharge; and
- application procedures for consolidation, forgiveness, cancellation, and discharge.
At the time of the event, you can access Mapping Your Future by selecting "Mapping Your Future" from the Helpful Links page that is located in the "Resources" section of the Lender Zone.
Students can use the link on the right side of the Student Zone front page.
Mapping Your Future can also be accessed directly at mapping-your-future.org.
The calendar of upcoming Chat Events is in the Outreach Activities section of College Zone, which can be accessed in the center of the College Zone home page. Remember, also, that a poster (in .pdf format) listing 2004-05 Chat Events is available via the "Live Chat Events" page of the Mapping Your Future Web site. You may wish to consider printing (on 8½" x 11" paper, in color or black & white) and displaying this poster in areas that can be easily viewed by individuals seeking information about the college process.
Archived Questions and Answers from earlier chats can be accessed by visiting the section entitled "Chat Transcripts" at mapping-your-future.org/services/chatnight.htm.
The above is based on information from a Mapping Your Future E-Update. Mapping Your Future is a national collaborative public service project of the financial aid industry, including ISAC - bringing together the expertise of the industry to provide free college, career, financial aid, and financial literacy services for schools, students, and families.
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ISAC UPDATE
Electronic ISAC Update for April 2005 Available at College Zone
Sent on May 2, 2005
The April 2005 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 April via College Zone's e-Messaging service.
Topics covered in the April 2005 ISAC Update include:
- Change in DAAR Refile Policy
- Take the Credit Challenge! National Credit Education Week: April 18 - 23, 2005
- Deferments, Forbearances, and Default Prevention Chat Event - April 12, 2005
- Electronic ISAC Update for March 2005 Available at College Zone
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