Guide to Federal Tax Benefits for Tuition and Fees

EDFUND's redesigned guide to higher education tax incentives including tax benefit updates for tax year 2007 is now available. Schools are encouraged to provide this guide to students and parents. Intended as an overview of federal tax benefits, it summarizes the following topics and programs:

• Hope Scholarship Tax Credit
• Lifetime Learning Tax Credit
• Tuition And Fees Tax Deductions
• Coverdell Education Savings Accounts
• Qualified Tuition Program
• Student Loan Interest Deduction

The publication also includes links to further information on the IRS publications Web site.

Order for free (Order Number: I-91) or download Guide to Federal Tax Benefits for Tuition and Fees - Tax Year 2007.

A Statement from EDFUND President Sam Kipp

EDFUND lives by its core values — Excellence, Commitment, Integrity and Teamwork. We have built our reputation on these values and our commitment to providing exceptional service to students and the colleges they attend.

I wanted to take an opportunity to update you on what you may be reading about EDFUND. Last year, Governor Schwarzenegger proposed the privatization of EDFUND through a sale or other arrangement without adversely affecting student access to postsecondary education.

In early January 2008, the Department of Finance engaged Bear Stearns as their sale-side-advisor to explore options for EDFUND. In addition to a conventional sale option, the Department of Finance, in consultation with the State Treasurer, may also explore an alternative arrangement to a traditional sale. EDFUND management has been involved in discussions with the Department of Finance since the proposal was first announced. We are also having discussions with Bear Stearns and Department of Finance officials and will continue to do so to help assure an outcome that serves the best interests of all parties, especially the students and colleges we serve.

Our commitment to students, schools and the industry is the cornerstone of our company. I remain confident about the future of EDFUND and convinced that the spirit of our people, the strength of our reputation for providing superior service and our unique service model will continue to benefit schools and borrowers. I also remain committed to keeping you informed as significant milestones are reached during this process.

Statement from EDFUND President Sam Kipp

EDFUND Offers Free Training Opportunities

How to Get the Most Out of Training
Training and technology have come a long way in recent years. A financial aid office has many options to receive training and one very popular option is Web training. Webinars allow schools to receive pertinent financial aid training without having to leave their campuses and to participate in training with little interruption to the flow of their office.

EDFUND webinars provide focused and specific training on single topics. This approach is ideal for cross-training, topical training for new staff or other campus departments and refreshers for the seasoned financial aid veteran. As an alternative to a regular staff meeting, the entire staff can be brought together to participate in a training session on-site; this is nearly impossible for off-campus training. Webinars are innovative, effective time-and cost-saving options for your office.

As you prepare to participate in an EDFUND webinar, we'd like to share some tips on basic meeting etiquette that still apply to the Web environment, courtesy of InterCall's The Meeting Coach newsletter. We hope that these tips will assist you in having a positive webinar experience.

• When asking a question or participating in a conversation during a webinar, make sure to state your name. This simple courtesy will make the presentation seem more personal.
• Stay focused on the webinar. Avoid outside distractions like side conversations and e-mails. You never know when the leader may ask for your input, pass control of a document to you, or send out a poll for your response.

For 2008, there is a vast array of training topics to choose from in both webinar and national in-person workshops through the EDFUND Institute.

Registration is now open!

EDFUND is committed to being your first choice for all your training needs.

Our People Make the Difference

It is our pleasure to introduce you to some of the people at EDFUND who make the difference through their commitment to helping make EDFUND the premier service provider in the student financial service industry.

Christine Sheppard, Manager, School Services

Christine Sheppard has been with EDFUND for 11 years, and she's no stranger to in-depth research and analysis – these skills are part of her everyday duties, but they come in handy even outside the office.

As manager of School Services under the Loan Operations Division, Christine and her team work with EDFUND client relations managers and directly with school financial aid representatives to research files, assist with loan reject questions, and solve transmission issues. They swiftly troubleshoot situations that arise for financial aid offices processing student loans.

But when Christine was ready to get a new pet after having lost her beloved canine friend, it took four years and extensive research to decide on a new one. After all, choosing a companion for your family isn't a decision to be taken lightly.

“We researched dog breeds and even bought a dog encyclopedia before deciding on a Norwich Terrier,” she says. She actually took in two of the furry pooches, one of which is a show dog. Christine says he's three points away from a championship – proving her thoroughness worthwhile.

Back at the office, Christine's team has been busy providing support for a number of EDFUND products and services. They recently supported changes to QuickForms™ that will enhance the product's capability and printing functions, making it more user-friendly. They're also working to reduce paper reports and improve security for schools to minimize risk to student data.

Christine also manages the Data Review Team (DART), which works with schools on appeals to draft cohort default rates and other data review relating to NSLDS. “Schools provide information and we do research to see if particular students belong in the cohort. Then we respond to the school and to the Department,” says Christine. With the February release of draft CDRs just around the corner, they're gearing up for the busy season.

Almost everyone on the School Services team has worked for a lender or financial aid office, so they have a strong student loan background. “They're very conscientious and committed to providing quality service – they take pride in what they do,” says Christine. “Each of our customers is important. We're here to ensure they get the information they need or to have their issues resolved quickly, so customers should never hesitate to call.”

Start the Year off Right

The new year is upon us. It's time to take a deep breath and dust off that “to do” list. We should look upon this time of year as an opportunity to start fresh.

So where would be a good place to start? Consider default prevention and student success one of your highest priorities. It is a good time to reevaluate some of the current products and services you might be utilizing to help with your school's default prevention efforts.

How about getting a head start on counseling borrowers for the current cohort year?

EDFUND offers the Cohort Management System (CMS), a powerful online tracking tool developed to help schools manage borrower contact during grace, repayment and delinquency periods. With built-in logic that identifies borrowers who will have the most immediate impact on your current cohort default rate, the CMS helps keep you focused on resolving delinquencies by:

• prioritizing borrower contacts according to days delinquent;
• organizing day-to-day activities by displaying tasks to be performed each day;
• producing a list of follow-up activities according to dates that you specify;
• showing all prior activities recorded in the CMS, including steps you've already taken and whom you've previously called;
• providing a notes tab to include more information about borrower conversations, borrower information or anything you choose; and by
• providing skip tracing and cohort summary reports.

CMS also offers schools the ability to update EDFUND's mainframe in real time with student demographic information. This allows EDFUND counselors access to the most up-to-date information to help locate and contact delinquent borrowers.

Working together, we can resolve student loan delinquencies and put students on the path to successful repayment.

If you've wanted to enhance your default prevention efforts and would like additional information about the CMS or other products and services, please contact your client relations manager.

  EDFUND's Cohort Management System

Dear Colleague Letter Discusses Major Changes as a Result of CCRAA

The Department has released the much awaited Dear Colleague Letter (DCL), GEN-08-01 and FP-08-01, covering the major changes made to the Title IV loan and grant programs by the College Cost Reduction and Access Act of 2007 (CCRAA).

Financial Aid Guidance Review

EDFUND's Government Relations staff has updated a document summarizing the latest communications to federal student aid administrators from ED.

A Guidance Review —View a listing of the Dear Colleague Letters (DCLs) and Electronic Announcements for December 2007.

NewSource Hits the Newsstands!

If you've ever wondered how EDFUND interacts with defaulted student loan borrowers, you're in luck: this month in NewSource, we sit down with debt counselors to find out how defaults are rehabilitated.

You'll also get a sneak peek at our handy, one-page flyer that covers higher education tax benefits, and see the results of a report ordered by Congress on college enrollment among minority students.

These and other stories can be found in the first NewSource of 2008!

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