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VOL. 24, NO. 9L
March 2007
Welcome to the March 2007 ISAC Update for lenders and servicers, which is a compilation of e-Messages sent through College Zone’s e-Messaging service throughout March. 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 800.477.4411 and speaking with one of the following staff members:
- Sharon Bankston, extension 2826
- David Barinholtz, extension 2822
- 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, March 30, 2007
Sent to Marketing News, Announcements and Operational Updates, Announcements on March 22, 2007 The next regular meeting of the Illinois Student Assistance Commission is scheduled for 10 a.m. on Friday, March 30th at Millikin University in Decatur.
The tentative agenda for the meeting includes:
- Proposed Rules and Amendments
- FY 2008 Illinois Designated Account Purchase Program (IDAPP) Budget Request
- IDAPP Quarterly Investment Report
- College Illinois! Investment and Performance Report
The Agenda Book, providing a final agenda and 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.
There will be no Executive Briefing Conference Call following the March Commission Meeting.
ISAC Executive Director Responds to Chicago Tribune Article
Sent to Marketing News, Announcements and Operational Updates, Announcements on March 14, 2007 Many of you may have seen or heard about an article which appeared in the Sunday, March 11th Chicago Tribune which raised questions about selling a portion of the Illinois Student Assistance Commission's (ISAC's) student loan portfolio. In response, ISAC Executive Director Andrew Davis has released a statement clarifying information contained in the article.
In short, although the article implies that ISAC has proceeded with the sale of assets without legislative approval, in point of fact, ISAC was mandated to do so through Public Act 94-1056, approved by the Illinois General Assembly and signed by the governor on July 30, 2006. As required by the legislation, the capital generated by the recently completed sale, as well as through a planned subsequent sale this spring, will fund wholly and in part, the MAP Plus Program ($34.4 million) and the Monetary Award Program (MAP) ($26.8 million), respectively, during fiscal year 2007.
Andy's statement is included in its entirety below.
STATEMENT BY ANDREW DAVIS
EXECUTIVE DIRECTOR, ILLINOIS STUDENT ASSISTANCE COMMISSION (ISAC)
IN RESPONSE TO CHICAGO TRIBUNE ARTICLE
ON SUNDAY, MARCH 11, 2007
"I appreciate the interest the Chicago Tribune has demonstrated in the Illinois Student Assistance Commission (ISAC), the state's premiere agency for helping Illinois students attend college.
"Despite the many interviews and countless hours of investigative research that went into this story, the most significant factual allegation made in the story is simply and glaringly false. In paragraph three, the Tribune writes Governor Rod Blagojevich's ISAC '…commissioners have forged ahead without legislative approval,' to sell part of ISAC's student loan portfolio.
"Public Act 94-1056 - passed by the Illinois State Senate and House of Representatives on May 4, 2006, and signed into law by the Governor on July 30, 2006 – expressly authorizes ISAC to raise the funds appropriated for the financial year 2007 increase in the Monetary Award Program (MAP) and to fund the new MAP Plus initiative, by selling assets or restructuring ISAC's business.
"In following the precise instructions of Public Act 94-1056 ISAC has already funded nearly $20,000,000 in MAP Plus grants. These grants have given financial relief to nearly 40,000 middle-income Illinois families with students in college. ISAC anticipates making another 30,000 MAP Plus grants later this spring. To fund these grants we followed the directive of the General Assembly and deliberately and thoughtfully identified the most appropriate portfolio of student loans to sell. ISAC then executed that sale in an open and fair auction. A second sale that we anticipate holding later this spring will provide the financing for the historic increase in our need based MAP program.
"This agency has a proud 50-year history of service. It also has a bright future if it accepts the mandate of the Governor and support of the legislature to continue its mission of helping Illinois students overcome financial barriers so that they may start and complete the very best college education for which they are otherwise eligible."
Special Message from ISAC's Executive Director
Sent to Marketing News, Announcements and Operational Updates, Announcements on March 7, 2007
Dear Colleagues:
I'm writing to you today to share my perspective on the commitment of the Illinois Student Assistance Commission (ISAC) to the students and families of the State of Illinois. In this year, which marks the 50th anniversary of the creation of the entity that is now ISAC, it is appropriate, especially for a new Executive Director, to lead an exercise of self-examination. One place that an organization such as ours should look to fully understand itself is its original and amended enabling legislation. I have done that, and am happy to say that ISAC's fundamental mission remains the same:
- informing students and families on how to overcome financial barriers to access higher education; and
- providing comprehensive, total solutions to meet those needs.
Our value is in an ISAC that increases its focus on need-based assistance programs for Illinois citizens, and in doing so utilizes the strategic advantages that are unique to us as a not-for-profit creation of the State of Illinois. Simply put, we can focus on needs that can best be identified and delivered by a trusted governmental agency that does not have shareholder-driven requirements of profitability. Any withdrawal of ISAC from certain markets, products or services should not be misinterpreted as a sign of diminished commitment to our mission, but rather should be viewed as a strengthening of our focus on programs, products and services providing unique benefits to our core Illinois constituency.
Going forward we will best serve the students of Illinois if we continue to support the Monetary Award Program (MAP) as our flagship need-based grant program, continue as the guarantor for Illinois and revamp our loan offerings to offer unique benefits exclusively to Illinois residents. The current array of ISAC services that focuses on informing students and families on how to overcome financial barriers to higher education, including College Zone and our electronic services such as IllinoisMentor and the Illinois Electronic Transcript Exchange, will be maintained in both the short and long terms. At the same time, we intend to continue encouraging Illinois families to participate in the College Illinois! prepaid tuition program.
We will do this as a collaborative effort. The ultimate goal is to offer a suite of financial assistance programs that make up a comprehensive solution to the financial problems that can prevent Illinois students from pursuing and completing the very best college programs for which they are otherwise eligible.
In closing, I'd like to invite you to stop by our 50th anniversary reception from 5:30 to 7:30 p.m. on Monday, March 19th at the 2007 Conference of the Illinois Association of Student Financial Aid Administrators (ILASFAA), Inc. It will be an excellent opportunity for us to meet.
Sincerely,
Andrew Davis
Executive Director
Illinois Student Assistance Commission
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MARKETING NEWS, ANNOUNCEMENTS
New Test Preparation Tools in IllinoisMentor
Sent on March 9, 2007 IllinoisMentor at collegezone.com now includes a free, comprehensive, Web-based test preparation course to help students prepare for the ACT, SAT and GRE college entrance exams.
Student Friendly Services
The course allows students to reinforce the academic skills tested by the ACT, SAT and GRE exams through a series of tutorials, practice sessions and vocabulary drills. In addition, high school students can take advantage of other options like e-mail reminders with tips, word-of-the-day and question-of-the-day features, and even elect a parent, teacher or counselor as a "coach" to mentor them throughout the test preparation process. The course gives students an added advantage when it comes to preparing for their college entrance exams and raising their scores. The student must have an IllinoisMentor login to access the Test Preparation area of the site.
Dynamic Vocabulary Builder
A 2,000 word vocabulary builder makes learning words easy and enjoyable and automatically adapts to the student's ability level. The Vocabulary Builder presents words based on its assessment of the student's vocabulary skills. When the student gets a word right twice, it is added to their personal list of the mastered words and stored on an electronic flashcard for subsequent review.
Self-Paced Tutorials
User-friendly, in-depth tutorials are available for each subject area and/or question type covered on the entrance exams. The tutorials are designed to reinforce relevant academic skills by teaching students how to approach each kind of question, letting them practice questions at their own pace, and monitoring their progress.
To learn more about the new test preparation section of IllinoisMentor, as well as all of the available Modules - including the Career Center, Plan for College, Find a College, Applications & Transcripts and more - access IllinoisMentor through the collegezone.com home page.
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OPERATIONAL UPDATES, ANNOUNCEMENTS
ED Issues Revised Stafford MPN Addendum and Plain Language Disclosure
Sent on March 2, 2007 The Higher Education Reconciliation Act (HERA) enacted in 2006 made several changes to Federal Family Education Loan Program (FFELP) loans. To inform borrowers of the changes to the terms and conditions of their loan(s), the U. S. Department of Education (ED) issued addenda and revised Plain Language Disclosures (PLD's) to be used in conjunction with the current Stafford and PLUS Master Promissory Notes (MPN's), and the Consolidation Application and Promissory Note. The one change that was not included in the previous Stafford MPN Addendum and PLD was the annual loan limit increases for first and second year students that are effective on July 1, 2007.
On March 1, ED issued Dear Colleague Letter (DCL) FP-07-02, which publishes revised versions of the Stafford MPN Addendum and PLD to include these loan limit increases. The PLD also includes a change to Item 9, which clarifies that some loans with a variable interest rate have a rate that is lower during in-school, grace, and deferment periods, and higher during repayment and forbearance periods.
The revised addendum and PLD must be used with the current Stafford MPN until a revised MPN is developed and approved (the current form has an expiration date of 2/29/08). FFELP participants must discontinue use of the addendum and PLD that were published in 2006 and begin using the revised forms as soon as possible.
No changes were made to the PLUS MPN Addendum and PLD, the PLUS Endorser Addendum or the Consolidation Application and Promissory Note Addendum.
Please continue to refer to DCL FP-06-05 for guidance in using the addenda and PLD's.
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ISAC UPDATE
Electronic ISAC Update for February 2007 Available at College Zone
Sent on March 1, 2007 The February 2007 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 February via College Zone's e-Messaging service.
Topics covered in the February 2007 ISAC Update include:
- Presidents' Day Holiday Processing Schedule
(sent February 14, 2007)
- Introducing: "Understanding Financial Aid Packaging" Sessions - Register Now
(sent February 6, 2007)
- Electronic ISAC Update for January 2007 Available at College Zone
(sent February 1, 2007)
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