 |
VOL. 23, NO. 11L
May 2006
Welcome to the May 2006 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
Commission Meeting to be Held Friday, June 16, 2006 (New Date)
Sent to Marketing News, Announcements and Operational Updates, Announcements on May 18, 2006
The next regular meeting of the Illinois Student Assistance Commission, originally scheduled for June 23rd, has been rescheduled for Friday, June 16, 2006, at Harold Washington College in Chicago.
The tentative agenda for the meeting includes:
- 2006-07 Monetary Award Program (MAP) Recompute Formula
- Proposed Rules and Amendments
- College Illinois! Investment Manager Selection
- Illinois Designated Account Purchase Program (IDAPP) Financing
The Agenda Book, providing the meeting's start time and the final agenda with a full description of each agenda item, will be available four to seven days prior to the meeting via the ISAC's Governing Board: The Commission section of the e-Library at collegezone.com.
Mark Your Calendar for Upcoming Important Dates
Sent to Marketing News, Announcements and Operational Updates, Announcements on May 11, 2006 The Illinois Student Assistance Commission (ISAC) would like to make you aware of the following information, which may be of interest to you and/or your customers.
MAPPING YOUR FUTURE CHAT EVENT
May 16th – Financial Aid and Managing Student Loans and Consumer Debt
On Tuesday, May 16, 2006, Mapping Your Future will offer a "Financial Aid and Managing Student Loans and Consumer Debt" chat from 6 to 7 p.m. (CT). The chat is designed to help students obtain information about debt management.
During this "Financial Aid and Managing Student Loans and Consumer Debt" Chat Event, participants will learn about:
- the Free Application for Federal Student Aid (FAFSA),
- financial aid programs,
- student loan repayment options,
- credit cards,
- credit reports, and
- budgeting.
At the time of the event, you can access Mapping Your Future by selecting "Mapping Your Future" from the "Lender Quick Links" menu that appears along the right margin of the Lender Zone front page.
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 - which includes the chat schedule through August 2006 - is in the Outreach Activities section of College Zone, which can be accessed in the center of the College Zone home page.
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.
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.
HOLIDAY SCHEDULES
A complete listing of 2006 holidays on which ISAC staff will be unavailable is provided at the ISAC Events Calendar.
May 29th – Memorial Day
Due to the Memorial Day holiday, ISAC offices will be closed on Monday, May 29th and will reopen on Tuesday, May 30th.
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 29th will be processed on May 30th, with results available May 31st (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 29th.
July 4th – Independence Day Holiday
Due to the Independence Day holiday, ISAC offices will be closed on Tuesday, July 4th and will reopen on Wednesday, July 5th.
Loan records received at ISAC on Independence Day, 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.
For Assistance
You can continue to access information at collegezone.com 24 hours a day, 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 Department. With the exception of holidays, ISAC staff will review and respond to messages during regular business hours (Monday through Friday, 8 a.m. - 5 p.m. CT).
 ISAC Budget & Legislative Update
Sent to Marketing News, Announcements and Operational Updates, Announcements on May 8, 2006 The Illinois General Assembly concluded its Spring session late on Thursday, May 4th, nearly a full month after the planned adjournment. Among the business completed was the passage of the fiscal year 2007 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, with the appropriation for the Monetary Award Program (MAP) actually increasing by $34.4 million, bringing the total MAP appropriation to $384.8 million. The increase in MAP funding is supported by state appropriated monies of $7.6 million and $26.8 million from revenues generated either by the sale of ISAC student loan assets, transaction processing or refinancing. Additionally, funding for the Silas Purnell Illinois Incentive for Access Grant Program increased by $1 million, the Dependents Grant Programs received an increase of $120,000, and funding was included for three new programs: MAP Plus, the Nurse Educator Scholarship Program and the Forensic Science Grant Program. It should be noted that the Merit Recognition Scholarship (MRS) Program is not funded in the budget for the second straight year.
A small number of other bills affecting Illinois students and their families were considered during the session. The bill that would have provided an additional 30 credit hours of MAP eligibility to students who were required to complete remedial courses was not passed by the General Assembly. House Bill 4406, which creates a new grant program to be administered by ISAC for students in the legal custody of their grandparents, has passed the General Assembly and awaits the governor's signature. This program, however, was not funded in the FY2007 budget, and would not be in effect until January 1, 2007, at the earliest.
More specific details about the FY2007 budget, including information about the three new programs, are 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.
Return to Top
Operational Updates, Announcements
Information for Lenders: FFELP Stafford and PLUS MPNs Approved and Unreported Loan Rosters Mailed
Sent on May 24, 2006
The Illinois Student Assistance Commission (ISAC) would like to make you aware of the following information, which may be of interest to you.
Approval of Stafford and PLUS MPNs for FFELP Loans
Dear Colleague Letter (DCL) FP-06-08* announces approval of the Federal Stafford Loan Master Promissory Note (MPN) and the Federal PLUS Loan Application and Master Promissory Note, used for the Federal Family Education Loan Program (FFELP). The Office of Management and Budget (OMB) has approved these documents without any changes to the text or format of the previously approved form. Both documents expire in 2008.
Program participants may begin distributing the revised forms immediately, and must reflect the new expiration dates on the hardcopy version of the MPNs the next time they are scheduled for reprinting and distribution (the expiration dates must be changed on Web-based versions of the documents as soon as possible).
The revised MPNs, along with the promissory note addenda and revised Plain Language Disclosure (PLD) forms for the Federal Stafford, PLUS and Consolidation Loan Programs that were announced with DCL FP-06-05, can be requested through the Order Materials areas of collegezone.com.
DCLs are posted online at the Information for Financial Aid Professionals (IFAP) Library, which can be accessed via the "Letters and Publications" section of the Federal Information area within the e-Library at collegezone.com.
* Note: There is an error in the "Printing Instructions" section of DCL FP-06-08. The U.S. Department of Education has confirmed that the last two sentences of this section [which read: "The program names appear in the header of the form. While a program participant may change the order of the program names, the names of the other program(s) must remain on the form."] should be ignored.
NSLDS Lender Manifest Report of Unreported Loans Rosters
NSLDS Lender Manifest Report of Unreported Loans rosters were mailed to lenders/servicers earlier this week. This report lists the following:
- any ISAC-guaranteed loan with an open loan status that does not reflect a Lender Manifest update within the past 180 days; and
- open loans that have not been updated via a Lender Manifest.
Please take the time to review the loans listed on the report and make the necessary data corrections so that these loans can be successfully reported on your next monthly Lender Manifest submission.
Updated Deferment Forms Released
Sent on May 9, 2006 The U.S. Department of Education (ED) has issued Dear Colleague Letter (DCL) FP-06-06, which announces the approval and release of revised Federal Family Education Loan Program (FFELP) loan deferment forms. These forms have a new expiration date of January 31, 2009.
- Unemployment
- Public Service
- Parental Leave/Working Mother
- PLUS Borrower with Dependent Student
- In-School
- Economic Hardship
- Education Related
- Temporary Total Disability
The revised forms are available for immediate use and can be ordered through the Order Materials page of collegezone.com. Program participants may begin distributing them immediately. Beginning September 25, 2006, these are the only forms that may be provided to eligible borrowers, however, previous versions of these forms may continue to be processed after that date.
DCL's Regarding HERA Changes
Sent on May 1, 2006 The U.S. Department of Education (ED) has released two Dear Colleague Letters (DCL's) containing information about the provisions of the Higher Education Reconciliation Act of 2005 (HERA).
- DCL FP-06-05 announces the availability of the promissory note addenda and revised Plain Language Disclosure (PLD) forms for the Federal Stafford, PLUS and Consolidation Loan Programs. These documents disclose the changes to the terms and conditions of Federal Family Education Loan Program (FFELP) loans resulting from the HERA and, until revised promissory notes are approved, must be used with the current Federal Stafford Loan Master Promissory Note (MPN), Federal PLUS Loan Application and MPN, and Federal Consolidation Loan Application and Promissory Note.
The DCL provides guidance on the use of the new documents, as well as additional guidance on awarding Federal PLUS loans to graduate and professional students. Sample addenda and PLD's are attached to the DCL; supplies of each can be requested through the Order Materials areas of collegezone.com.
- DCL GEN-06-05 announces the changes made to the Student and Institutional Eligibility and Student Assistance General Provisions of the Federal Student Aid Programs as a result of the HERA. These provisions are effective for the 2006-07 academic year for Title IV, HEA grant and campus-based programs, and for loan periods beginning on or after July 1, 2006 for FFELP and Direct Lending, unless otherwise noted. Included among them are changes to length of academic year, distance education, need analysis and cost of attendance, program eligibility, return of Title IV funds and student eligibility.
Return to Top
ISAC Update
Electronic ISAC Update for April 2006 Available at College Zone
Sent on May 1, 2006 The April 2006 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 2006 ISAC Update include:
- ISAC to Pay Default Fee on Behalf of Borrowers
(sent April 28, 2006)
- ISAC Loan Options Expand for Graduate Students
(sent April 27, 2006)
- Commission Meeting to be Held Friday,
April 28, 2006
(sent April 14, 2006)
- Electronic ISAC Update for March 2006 Available
at College Zone
(sent April 3, 2006)
Return to Top
|
|
|
|
