DEFAULT AVERSION SYMPOSIUM V RECAP
"Three-year CDR Calculation and Programs to Enhance Student Success" was the focus of the Michigan financial aid community as they participated in the fifth installment of the Default Aversion Symposium Series that was held on Wednesday, October 28, 2009. MGA developed the symposium series after Federal Student Aid launched a statewide default prevention project to engage schools, lenders, and guarantors to develop or enhance default prevention activities. In conjunction with the Michigan Statewide Default Prevention Project that began in 2006 and the united goal that we all share in ensuring that Michigan students avoid loan default, this installment built on the fourth symposium's theme, "Financial Literacy and Student Success."
MGA AVERTS MORE THAN $1 BILLION IN STUDENT LOAN DEFAULTS
MGA was successful in averting default on more than 88 percent of loan accounts on which payments were reported by the lender as being 60 days or more past due. MGA prevented over $1 billion in defaults on more than 105,404 past due federal student loan accounts during the fiscal year ending September 30, 2009.
MGA'S NEW STUDENT LOAN OMBUDSMAN
MGA is pleased to announce the appointment of Pat Fromm as the new Student Loan Ombudsman for the agency. As Ombudsman, Pat's principle duty is to help resolve disputes between a borrower and schools, other guarantors, lenders, or servicers, Borrowers are encouraged to make every effort to resolve their student loan problems, however if they have done all they can do and have not been able to reach a solution, Pat is available to assist them. As MGA's Ombudsman, Pat works with the U.S. Department of Education's Ombudsman Office to help borrowers resolve disputes or other problems with their student loans. Pat may be reached at 1-800-642-5626, extension 36076, or via email
at frommp@michigan.gov.
IMPLEMENTING REAUTHORIZATION FINAL RULES: LOAN ISSUES
Loan issues including preferred lender relationships, cohort default rate calculations, and new Title IV and private loan disclosure requirements were finalized and will be published, discussed, and summarized in upcoming Michigan Guaranty Agency School workshops, U.S. Department of Education (ED) Webinars, and the NASFAA fall training series.
FINAL REGULATIONS POSTED - LENDER AND GENERAL LOAN ISSUES
The U.S. Department of Education (ED) published final regulations in the October 29, 2009, Federal Register pertaining to lender and general loan issues. These final rules implement provisions of the Higher Education Opportunity Act (HEOA) and other recently enacted legislation, with an effective date of July 1, 2010. Most of the provisions themselves, however, were effective upon enactment of the HEOA on August 14, 2008, and participants were expected to have made a good faith effort to comply with the statute in a timely manner.
NCES AND OPE ANNOUNCE THE RELEASE OF THE HEOA NET PRICE CALCULATOR TEMPLATE
In accordance with Sec. 111 of the Higher Education Opportunity Act of 2008 (HEOA), the National Center for Education Statistics (NCES) and the Office of Postsecondary Education (OPE) at the U.S. Department of Education (ED) announce the release of a net price calculator template. With its release, all institutions participating in Title IV Student Financial Aid Programs institutions have two years to:
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Implement use of the template on their Web sites, or
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Develop a customized version that must include, at a minimum, the same elements as ED's version.
COMMON MANUAL
UPDATES
In its October 15, 2009, meeting the Common Manual Governing Board approved the five policy proposals in Batch 161 (proposal numbers 1142-1145 and 1147). The approved policies may now be implemented based on their individual effective dates.
These changes will be incorporated into the Integrated Common Manual. The Integrated Common Manual is available on the Common Manual Web site at commonmanual.org or may be accessed through a link on MGA's Web site at mgaloan.com.
ED PIPELINE
Follow the links below to access some of the most recent announcements for schools and lenders from the U.S. Department of Education (ED). Visit the Information for Financial Aid Professionals (IFAP) Web site to review all announcements.
UPDATES TO MGA'S ACTIVE MICHIGAN SCHOOL LIST
Information has been received from schools regarding recent changes that should be recorded by lenders on MGA's "Active Michigan School List" dated January 16, 2009. If you have any questions regarding these updates, please contact Stacy Cardwell at 1-800-642-5626, extension 36074, or via email at cardwells@michigan.gov.
"Q" AND "A"
TRANSFER STUDENTS AND TRANSFER STUDENT MONITORING PROCESS
What is the Transfer Student Monitoring Process?
The Transfer Student Monitoring Process is a process to utilize the National Student Loan Data System (NSLDS) in determining a transfer student's financial aid history to identify if the student is eligible for Title IV aid. NSLDS alerts schools of relevant changes in financial aid history that may affect the current year award for the transfer student. NSLDS will also monitor these students for changes in financial aid history such as when a new disbursement or grant is awarded or cancelled.
CALENDAR OF UPCOMING EVENTS
Following is a list of upcoming events of interest to the financial aid
community. If you have any items that you would like to see added to our
calendar, please contact Jim Peterson at 1-800-642-5626, extension 36944, or
via email at petersonj@michigan.gov.