VOL. 24, NO. 1L
July 2006
Welcome to the July 2006 ISAC Update for Lenders and Servicers, which is a compilation of e-Messages sent through College Zone’s e-Messaging service throughout July. 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, July 28, 2006
Sent to Marketing News, Announcements and Operational Updates, Announcements on July 17, 2006
The next regular meeting of the Illinois Student Assistance Commission (ISAC) is scheduled for Friday, July 28th at the ISAC office in Deerfield, Illinois.
The tentative agenda for the meeting includes:
- College Illinois! Retreat/Training Session (anticipated to last up to two hours)
- Appointment of College Illinois! Investment Manager
- Institutional Application to Participate in ISAC Gift Assistance Programs
- Monetary Award Program (MAP) and Silas Purnell Illinois Incentive for Access (IIA) Program Status Reports
- Proposed Rules for New Programs
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.
As always, the online Agenda Book will be updated after the July 28th meeting to reflect action taken. At this time, there are no plans to hold an Executive Briefing Conference Call.
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Operational Updates, Announcements
Revised FFELP Forms
Sent on July 5, 2006
The U.S. Department of Education (ED) has published two new Dear Colleague Letters (DCL) which announce the availability of revised forms for the Federal Family Education Loan Program (FFELP): a revised Addendum for the Federal Consolidation Loan Program Application and Promissory Note and the Teacher Loan Forgiveness Application and Forbearance forms.
DCL FP-06-12 - Revised Addendum for the Federal Consolidation Loan Program Application and Promissory Note
This addendum includes changes implemented by the Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, and Hurricane Recovery that was passed on June 15th, which include:
- repealing the single holder rule for consolidation loans; and
- reinstating a FFELP borrower's ability to consolidate into the Federal Direct Loan Program if the borrower is unable to obtain a FFELP consolidation loan with income-sensitive repayment terms.
This addendum also includes a revised explanation of the new identity theft discharge which clarifies that only the portion of a consolidation loan attributable to eligible underlying FFEL or Direct Loan program loans may be discharged under this provision.
These changes apply to all consolidation applications received on/after June 15, 2006. This revised addendum replaces the version that was published in DCL FP-06-05, and must be included with all consolidation applications.
DCL FP-06-13 - Teacher Loan Forgiveness Application and Forbearance Forms
These revised forms implement the changes made to this program by the Higher Education Reconciliation Act (HERA) of 2005, which include:
- defining highly qualified for nonprofit private elementary and secondary school teachers, as it pertains to this program;
- extending the increased forgiveness amount beyond October 1, 2005; and
- clarifying that elementary and secondary schools operated by the Bureau of Indian Affairs are considered low-income schools for the purpose of teacher loan forgiveness.
The Teacher Loan Forgiveness Forbearance Form outlines the requirements for granting a forbearance to an eligible borrower who will be performing a qualified teaching service and whose loan forgiveness benefit will not satisfy the anticipated outstanding balance at the end of the borrower's fifth year of qualifying teaching service.
Program participants may begin using the revised Teacher Loan Forgiveness forms immediately, but must fully implement these forms by December 16, 2006. The expiration date on these forms has not changed; it remains November 30, 2007.
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ISAC Update
Electronic ISAC Update for June 2006 Available at College Zone
Sent on July 3, 2006
The June 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 June via College Zone's e-Messaging service.
Topics covered in the June 2006 ISAC Update include:
- New Student Loan Interest Rates Effective July 1st
(sent June 2, 2006)
- Electronic ISAC Update for May 2006 Available at College Zone
(sent June 1, 2006)
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