Just in Time…Your Solution to Loan Counseling

With all of the new regulatory changes, you are probably wondering how you are ever going to get entrance and exit counseling done on your own. Don't you wish there was an interactive and engaging online loan counseling tool that you could customize for your students? Well, there is…..

When it comes to entrance and exit counseling for federal student loans, the solution for today's digitally-inclined students is EDTE$T, EDFUND's online loan counseling tool.

Unlike other online counseling products, EDTE$T offers a unique combination of valuable information and stylish visuals. EDTE$T delivers information the way your students have come to expect it — through their computers, with interesting graphics and a streamlined, interactive format that compels them from first to last click.

• Stafford loan entrance and exit counseling (undergraduate and graduate levels)
• Perkins loan entrance and exit counseling
• Add school logo and/or link EDTE$T logo from your Web site
• Automatic e-mail updates when students complete tests (daily or weekly)
• Ability to select questions from a question bank to create a “Custom Test”
• Ability to specify design theme for tests: game board, or geometric
• Customized messages to give students more information
• Built in repayment calculators
• School access for changing test preferences and search for confirmations
• Secure and confidential data transmission

You may also use EDTE$T to supplement your in-person counseling efforts. Requiring a student to complete EDTE$T prior to an in-person meeting will better prepare them and give you an opportunity to cover additional information such as budgeting for that first year in school.

EDTE$T is already a hit with schools that use it. Take the guess work out of loan counseling.

• Check out EDTE$T.

To sign up for EDTE$T, call your EDFUND Client Relations Manager today.

New! - Overview of the Final Rules to Amend FFEL, DL and Perkins Loan Regulations

EDFUND's Government Relations unit has put together an Overview of the Final Rules on the new regulations that affect Title IV loans.

Final Rules were published in the Federal Register on November 1, 2007 and will be implemented by July 1, 2008 with the opportunity to implement certain regulations earlier at your institution's discretion.

Our policy experts present a detailed analysis of the regulations with helpful comments to help you understand the changes.

Overview of the Final Rules to Amend the Federal Family Education Loan, Federal Direct Loan and Federal Perkins Loan Program Regulations

House Democrats Introduce Higher Ed Reauthorization

House Education and Labor Committee Chairman George Miller (D-CA) and Higher Education, Competitiveness, and Lifelong Learning Subcommittee Chairman Reuben Hinojosa (D-TX) recently introduced a long-awaited proposal to reauthorize the Higher Education Act. The College Opportunity and Affordability Act of 2007 (HR 4137) represents House Democrats' version of what the federal role in higher education should look like for the next five years.

The bill includes more than 40 new programs and projects, a good number of which address the rising costs of higher education with proposals to make states maintain baseline levels of financial support, holding institutions accountable for tuition increases and providing students with upfront textbook cost information. The bill also includes many sunshine type provisions to bring additional transparency to both the federal loan programs and private loan providers. Other provisions of note include the creation of a two-page FAFSA-EX, expanded programs for veterans and students with disabilities and a student loan information piece that requires lenders and guarantors to provide schools' third-party default prevention contractors with personal student data.

While Senate education committee Chairman, Edward Kennedy (D-MA) had hoped the House would accede to his bill (passed earlier this year,) the 747-page House bill represents a clear statement that House leaders intend to make their mark on higher education. Once the House moves the HEA bill through committee and a vote on the House floor, a conference committee will need to hammer out the differences between the two bills. While the Congressional calendar becomes squeezed as the end of the year approaches, if a final bill is not agreed to before March 2008, the whole process could get lost in election year dynamics.

Easing Holiday Debt

The holidays will soon be here! Although our hearts are usually bigger than our wallets, it's important for all of us to manage our money during the season, especially students with limited income. The key to holiday shopping is to set some ground rules for your self. These tips may seem straightforward, but they will help you plan and manage your spending —and provide some good ideas to share with your students.

1. Set a budget before you start shopping and then stick to it, no matter how many great bargains you find.
2. Keep your receipts for all of the holiday gifts in one handy place. If you've gone over your budget and just can't bear to return some of the great bargains you've found, then at least put them away for a birthday or the next holiday season.
3. Don't forget about homemade gifts. Holiday decorations and crafts make wonderful gifts that last a lifetime. Almost everyone enjoys a nice tray of colorful cookies during the holiday season. The true meaning of the holidays is to spend time with friends and family. Racking up debt is not a part of the holiday spirit.
4. If you have a large family, you can draw names to exchange gifts instead of having every person in the family giving to everyone else.
5. Give gently used gifts such as books from thrift stores. It is OK to re-gift an item you haven't used.
6. Cut your gift list. Are there people you exchange gifts with out of habit even though you are no longer close? Suggest to them that you are on a budget this year and would prefer to only exchange cards or token gifts such as cookies or candy.
7. Give coupons for gifts of your time or for privileges. You can give coupons for things like:
   • Free car wash and detail
   • One pizza and a movie night
   • Free garage cleaning
   • Family fun night — parent's choice

Who’s Who in the FFEL Program Loan Process

The lender. The servicer. The guarantor. Who are all these people? To help you navigate your way through the maze of players in the Family Federal Education Loan (FFEL) Program loan process, here's a bit of background on each one.

Federal Government
The federal government provides guidelines for the FFEL Program, which is overseen by the U.S. Department of Education.

Guarantor
Also called the guaranty agency, the guarantor is a private nonprofit or state agency that conveys to the lender the federal government's promise that the student loans will be repaid. The guarantor keeps a record of all loans under its jurisdiction and may also collect on defaulted loans. The guarantor also assists the lender in contacting delinquent borrowers in an effort to counsel the borrower on their repayment options.

Lender
The lender is the source of the money students borrow from — a bank, savings and loan or credit union. The lender can choose to keep the loan until it is paid in full, contract with a servicer to handle the paperwork or sell it to a secondary market. It is important for students to notify their lender/servicer in a timely manner of changes to address, phone number or any other pertinent information.

Servicer
The servicer is an entity hired by the lender or secondary market to track and collect loan payments and to process information on details such as address changes, deferments and billing.

Secondary Market
Secondary market refers to private companies that purchase student loans from originating lenders. The sale of a loan does not alter its terms.

Ombudsman
An ombudsman resolves disputes from a neutral or impartial viewpoint , and can be beneficial if you cannot resolve a student loan problem by employing standard procedures. The Federal Student Aid Ombudsman's office toll-free phone number is 877.557.2575.

NSLDS
The National Student Loan Data System (NSLDS) is the Education Department's main database for student financial aid records. NSLDS provides a centralized, integrated view of your federal Title IV education loans and grants, tracking when they're approved until they are paid off. NSLDS Web site.

Credit Reporting Agencies
These agencies maintain your credit history, which reflects how well you repay your student loans, credit cards, car loans or any other credit you may have. Based on your performance, you are given a score that provides future creditors with information on whether or not you are considered a credit risk. Your credit history plays a big part in your future, because it is checked whenever you rent an apartment, buy a vehicle or apply for certain types of employment. Receive a free copy of your credit report from each of the three agencies.

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