Washington Report

Alternative Student Loan Proposal Savings More Than Enough to Fund Pell Grant Increase
A student loan reform proposal put forth by several student loan providers would generate more than enough federal budget savings to cover an increase in Federal Pell Grant funding proposed by U.S. House Democrats. Learn more.

Harkin to Chair Senate Education Committee
Sen. Tom Harkin, D-Iowa, will succeed the late Sen. Edward Kennedy, D-Mass., as chair of the Senate committee that oversees federal student aid programs. Read more.

Debt-Management Perspectives

Spotlight on the Value of Guarantor Services: Financial Literacy for College Students
When students at Ivy Tech Community College in Richmond, Ind., choose from among 10 freshman seminar offerings, one of the first classes filled is the personal finance course based on USA Funds^® Life Skills^®. Read more.

USA Funds Debt Manager How-To: Help Students at Risk of Default Before Cohort Year Ends
As the Sept. 30 end of the 2008 cohort period nears, USA Funds Debt Manager^® can help you reach out to students at risk of defaulting on their loans to provide them with options for bringing their accounts into good standing. Read more.

Reminder: Free Retention Workshops Begin Sept. 22
Register for one of four free, one-day retention workshops, part of a series from USA Funds and Noel-Levitz, an enrollment management consulting firm. The “Meeting Student Retention Goals in a Struggling Economy” workshops will provide timely and practical ideas for ensuring students stay enrolled to achieve their educational goals. Learn more and register.

Operations Bulletin

Negotiated Rulemaking to Address Program Integrity, Foreign School Issues
Sept. 25 is the deadline for nominating representatives to serve on negotiated rulemaking committees concerning program integrity and foreign school issues. In the Federal Register, the U.S. Department of Education outlines issues up for discussion. The Department’s Web site also provides information about the negotiated rulemaking sessions, which will begin in November. Negotiated rulemaking on student loan issues is on hold pending the outcome of legislation currently under consideration.

Dear Colleague Letter Addresses Prior Year Charges
The Department provided clarification of requirements related to minor prior year charges and how a school may use current year funds to pay them. In Dear Colleague Letter GEN-09-11, the Department notes that while, in general, institutions must use current year Title IV funds only for current year charges, they also may use current year funds for “minor prior year charges.”