Washington Report

House Panel Approves Measure Making Dramatic Cuts in FFELP
The U.S. House Committee on Education and Labor has approved legislation that would make an additional $19 billion in cuts to the Federal Family Education Loan Program, the largest federal student-aid program. Learn more.

Debt-Management Perspectives

USA Funds Student Loan Transition Guide to Launch, Share Data With USA Funds Debt Manager
June 25 marks the launch of USA Funds Student Loan Transition Guide^SM, the new exit-counseling component of the USA Funds Loan Counselor^SM suite of customized online loan-counseling services. In addition, integration between USA Funds Debt Manager^® and USA Funds Student Loan Transition Guide will streamline borrower communication. Learn more.

Tech Talk

Report Addresses Reinstatement of Auto-Canceled Disbursements
USA Funds^®’ guarantor-servicer has created a new report, Disbursements Eligible for Reinstate Based on New Enrollment (LFH47). The report will be available June 21 in Document Direct for the Internet. Read more.

OpenNet to Offer Printer-Friendly Change-Transaction-Results Page
Lenders and schools using OpenNet Web Loan Delivery to make certain loan and disbursement updates will have access to a printer-friendly version of the Transaction Results page effective June 23. Read more.

MEDLOANS OLP Updates, Enhances Information to Serve Medical Students
MEDLOANS Online Loan Portfolio, a student-counseling Web tool for medical schools and their students, is adding new features and updating information available to borrowers. The changes will be available June 23. Learn more.

Operations Bulletin

2007 Annual Electronic Common Manual Now Available
The 2007 annual update to the Electronic Common Manual now is available on the USA Funds Web site. It incorporates updates approved during the past year by the Common Manual Governing Board. You’ll need Adobe Reader to view and print the Common Manual.

Department Issues New Military-Deferment Form
The U.S. Department of Education recently issued a form for use in requesting the military deferment established in the Higher Education Reconciliation Act of 2005. In Dear Colleague Letter GEN-07-04, the Department announces that the newly approved Military Deferment Request form is available for immediate use and must be made available to borrowers no later than Oct. 1, 2007. The HERA permits borrowers to defer repayment on eligible loans for up to three years while they serve in the military on active duty during a war, other military operation or national emergency, or while performing qualifying National Guard duty. More information about eligibility criteria for the new military deferment is available in Common Manual section 11.8.

Reminder: Lenders Must Return Completed Direct Consolidation-Loan LVCs
The Department of Education recently notified education-loan guarantors that some lenders are returning Direct Consolidation Loan Verification Certificates without completing them, citing that no lender-identification numbers were provided. Lenders are reminded that they always must return a completed LVC for a Direct Consolidation loan, as the Department does not have a lender ID to specify. Instead, a Direct Consolidation LVC notes that the certificate has been submitted by the Department. For information about exceptions to the requirement that a loan holder complete an LVC, please see Dear Colleague Letters GEN-06-20 and GEN-07-03.