Washington Report

Reauthorization Bill Tackles College-Cost Increases, Lender-School Relations
Legislation sponsored by U.S. House Democrats to reauthorize the Higher Education Act includes provisions that seek to restrain college-cost increases and put in place new guidelines governing relations between education lenders and postsecondary institutions. The House Committee on Education and Labor is scheduled to act Wednesday on the College Opportunity and Affordability Act of 2007. Read more.

Student-Aid-Funding Bill Would Contribute to $4,925 Maximum Pell Grant
Student-aid-funding provisions in an appropriations measure approved by the U.S. Congress would contribute to a $615 increase in the maximum Pell Grant for the 2008-2009 award year. Learn more.

USA Funds Update

USA Funds-Sponsored Workshops Help Students Prepare for College
A grant from USA Funds^® is helping more than 1,000 Indiana students learn more about college-admission testing, scholarships and financial aid for college. Read more.

Operations Bulletin

Lenders Encouraged to Consider Economic-Hardship-Deferment Requests According to Department’s Clarification
The U.S. Department of Education recently clarified that lenders may continue to grant economic-hardship deferment based on a borrower’s certification of eligibility under the debt-to-income ratio criterion noted in section 2, number 6 of the Economic Hardship Deferment Request form. USA Funds’ policy advisers ask that lenders and loan-servicers include this guideline in their consideration of economic-hardship deferment for borrowers. Learn more.

USA Funds’ Policy Experts Outline New Federal Grad PLUS Entrance-Counseling Rules
Final education-loan regulations published Nov. 1 permit — but do not require — early implementation of the Grad PLUS entrance-counseling requirements included in those regulations. USA Funds’ policy advisers highlight key provisions in the regulations and recommend that schools begin offering Grad PLUS entrance counseling as soon as possible. Read more.

Department Issues 9/11-Loan-Discharge Form
The U.S. Department of Education has issued a new loan-discharge application for survivors of eligible public servants and other eligible victims of the Sept. 11, 2001, terrorist attacks. In Dear Colleague Letter GEN-07-08, the Department announced the new form, which may be used immediately but must be made available to borrowers by no later than Jan. 31. The letter also advises that requests for this type of loan discharge made by borrowers using other means prior to Jan. 31 may continue to be processed after that date. You will need Adobe Reader to access the application and Dear Colleague Letter on the USA Funds Web site.