Washington Report

CBO: Adjusting for Market Risk Cuts Student Loan Reform Savings by Nearly Half
The director of the Congressional Budget Office reports that adjustments for risks that loan default rates will be higher than anticipated and an increase in government administrative costs cut by nearly half the government’s projected savings from requiring the origination of all new federal student loans in the William D. Ford Direct Loan Program. Read more.

Student Lending Analytics Survey: Most Schools Plan to Remain in FFELP
A survey of 453 schools by Student Lending Analytics finds that most plan to continue to use the Federal Family Education Loan Program for the 2009-2010 academic year. Learn more.

USA Funds Update

USA Funds to Change Federal Default Fee Policy Oct. 1
USA Funds^® is changing its federal default fee policy. Effective for loans guaranteed beginning Oct. 1, 2009, USA Funds no longer will subsidize any portion of the 1 percent federal default fee. Read more.

Operations Bulletin

Department Issues Another Set of Proposed HEOA-Related Regulations
The U.S. Department of Education has issued proposed regulations developed following the efforts of the Loans — School-Based Loan Issues negotiated rulemaking team. The proposed rules reflect changes mandated by the Higher Education Opportunity Act. The July 28 Federal Register lists the proposed regulations and also provides instructions for commenting on them. Comments are due to the Department by Aug. 27.

Updated Loan Deferment Request Forms Available
The Department announced that revised loan deferment request forms are approved and available. The new forms reflect changes to deferment guidelines made by the HEOA. Learn more.

Policy Frequently Asked Question: Yellow Ribbon Benefits and EFA
USA Funds’ policy experts provide guidance regarding which Yellow Ribbon award funds to exclude from students’ Estimated Financial Assistance figures. Read more.