VOL. 22, NO. 13L
June 2005
Welcome to the June 2005 ISAC Update for Lenders and Servicers, which is a compilation of e-Messages sent through College Zone’s e-Messaging service throughout June. 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
ISAC Submits Comments to NASFAA
Sent to Marketing News, Announcements and Operational Updates, Announcements on June 22, 2005
In response to the request from the National Association of Student Financial Aid Administrators (NASFAA) for comments regarding its Reauthorization Task Force recommendations on the preliminary student loan package, we know many of our lender/servicer partners provided comments to NASFAA. Several lenders also solicited letters from schools supportive of FFELP and school choice. ISAC staff had the opportunity to talk with several lenders prior to the June 16 comment deadline and shared with them ISAC's stance on the issue. We wanted to share the following statement which ISAC provided to NASFAA with all of our lender partners:
The Illinois Student Assistance Commission does not support the recommendations made by the NASFAA Reauthorization Task Force.
While ISAC supports increases in student aid programs that focus on financially-needy students, ISAC has serious concerns about undermining the healthy competition that now exists between the two federal student loan programs. Implementing a discriminatory program like the proposed Student Aid Reward Act, or even significantly cutting funding for the FFEL program, will ultimately hurt students who have benefitted from improvements in the successful FFEL program. Furthermore, the recommendations make mandatory cuts to create discretionary spending. There is no assurance that any savings will be given to students through grant aid and may well be used for deficit reduction or any number of unrelated costs.
 New Student Loan Interest Rates Effective July 1st
Sent to Marketing News, Announcements, and Operational Updates, Announcements on June 8, 2005
The U.S. Department of Education has announced that, for variable-rate student and parent loans, interest rates for the period July 1, 2005 through June 30, 2006 are as follows:
- 4.70% for Federal Stafford Loan Program subsidized and unsubsidized loans while the borrower is in school, during the grace period, and during periods of deferment
- 5.30% for Federal Stafford Loan Program subsidized and unsubsidized loans during repayment and forbearance
- 6.10% for Federal PLUS Loan Program loans
Further details - including interest rate information for Federal Consolidation Loans - are available at College Zone's Interest Rates page, located within the "Loan Origination" area of the Lender Zone "Processes" section.
ISAC and IDAPP Update
Sent to Marketing News, Announcements, and Operational Updates, Announcements on June 2, 2005
The Illinois General Assembly concluded its Spring session late on Tuesday, May 31st. Among the business completed was the passage of the fiscal year 2006 budget for all State activities, including ISAC-administered programs. While the budget is not yet considered final, pending the Governor's signature, most of our scholarship and grant programs maintained level funding, while funding for the Monetary Award Program (MAP) actually increased by $11.7 million ($8 million in new state funds and $3.7 million in federal LEAP funds). It should be noted that the Merit Recognition Scholarship (MRS) Program is not funded in the budget, although ISAC had requested $5.4 million to provide level funding. A number of other bills affecting Illinois students and their families were passed by the General Assembly and also await the Governor's signature. Complete information about all General Assembly activity is available through the State Legislative Update posted at collegezone.com. We will continue to keep you apprised as the bills passed by the General Assembly are acted upon by the Governor.
Before legislators completed their business, a proposal that would have affected ISAC and IDAPP student loan activities surfaced in the State Senate. Unanticipated by ISAC, the proposal would have permitted the Governor's Office of Management and Budget (OMB) to initiate a sale of all or part of the IDAPP loan portfolio, at some point during or after FY2006. ISAC was not consulted regarding the proposal prior to it being filed, and most certainly did not support it; to the contrary, we aggressively opposed it and in the end, the bill did not advance.
In the wake of a couple of very intense days spent working to ensure our ability to continue serving our clients and Illinois college-bound students and their families, we feel this is not only the appropriate time to convey our sincere appreciation to you, but also to assure you of our commitment to continuing to provide excellent customer service. If you have any questions at all regarding what you might have heard or read in the media, please don't hesitate to contact us.
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ISAC UPDATE
Electronic ISAC Update for May 2005 Available at College Zone
Sent on June 2, 2005
The May 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 May via College Zone's e-Messaging service.
Topics covered in the May 2005 ISAC Update include:
- FFELP Processing News, Updates and Reminders, and Holiday Schedules
- ISAC and Tax Assistance Program Invite You to 2005 Financial Aid Conference on May 12, 2005
- Student Loan Consolidation, Forgiveness, Cancellation, and Discharge Chat Event - May 10, 2005
- Electronic ISAC Update for April 2005 Available at College Zone
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