Copyright 2010 NSLP Upcoming Federal Disclosures July, 2010

2 Disclosure background Requirement ensure: –Informed student loan borrower –Borrower lender choice –Transparency and high ethical standards –Preferred lenders based on best interest of borrower

3 Lender disclosures By –ED must determine minimum lender disclosures –The disclosures must be provided to prospective and current students –As of this writing (3-19) form not yet available

4 Private Education Loan Disclosures Form available now nts/GEN1001A-AppSelfCert.pdf nts/GEN1001A-AppSelfCert.pdf See Dear Colleague (GEN-10-01) for additional information 1.html 1.html

5 Preferred Lender Agreements (PLA) disclosures Schools with PLA’s must disclose on your website and in all informational materials that describe education loans: –Maximum amount of aid available under title IV –Information about model disclosure form –Any FFEL loan application from any eligible lender will be processed –TILA (Truth in Lending Act) disclosures are available at html#fdic http:// 300.html#fdic

6 Preferred Lender Agreements (PLA) disclosures Informational materials are –Publications, mailings, electronic messages or materials distributed to prospective or current students –Describe/discuss financial aid opportunities available Must be provided annually for consideration before a student borrows

7 Private Loan disclosures If your school provides information about private loans you must –Provide prospective borrowers with TILA disclosures –Inform borrowers of possible Title IV loans and the terms may be more favorable –Private Loan disclosure must be presented distinctly different that Title IV loan information

8 Private Loan disclosures If your school provides information about private loans you must: –Must to ED an annual report for each PLA lender Disclosures provided on school’s preferred list Detailed reasons why on the list as well as the benefits to the borrower –Make the report available to the public, prospective and current students

9 Direct Loan disclosures Does your school provides information about private education loans? –Then your school must: Concurrently provide information in the model disclosure form developed by ED or a comparable form your school designed Provide it to all currently and prospective students

10 Campus Safety Disclosures Fire safety –Statistics, annual safety report and fire log Missing students –Policies and procedures Emergency Notification –Policies Crime Reporting –Changes to Hate Crime reporting

11 Other Campus Disclosures Text Book –Provisions are statutory and apply to each school receiving federal financial assistance Peer-to-Peer file sharing –Policies and sanctions related to unauthorized Educational Outcomes –Placement and types of employment –Types of graduate and professional education –Retention rates –Completion and graduation rates

12 Additional Disclosures Plans for improving the academic program Student body diversity Vaccines Services and facilities for students with intellectual disabilities Terms and Conditions under which students receive FFEL, DL and Perkins loans Transfer of Credit Net price calculator

13 Code of conduct If a school participates in an Federal Student Aid (FSA) loan program, it must publish and enforce a code of conduct. When developing the code of conduct, the school should refer to DCL GEN for further details. The code of conduct applies to the officers, employees, and agents of the school and must also prohibit employees of the financial aid office from receiving gifts from a lender, guaranty agency or loan servicer.

14 Code of conduct (con’t.) The code must also prohibit financial aid office staff (or other employees or agents with responsibilities with respect to education loans) from accepting compensation for consulting arrangements or contracts to provide services to, or on behalf of a lender relating to education loans, and service on an advisory board, commission, or group established by lenders or guarantors, except for reimbursement for reasonable expenses.

15 Other changes General definition of a Higher Education Institution Definition of Proprietary Institution of Higher Education Master calendar updates Cost of attendance (COA) Total income Untaxed income and benefits

16 Other changes Independent student issues Social Security number Distance education and correspondence schools IRS data retrieval Regaining eligibility after a drug conviction Teach Grant Ability To Serve (ATS) form change Borrower eligibility for federal interest subsidy Total and permanent disability FFEL discharges

17 Questions

18 For more information National Student Loan Program 1300 O St. Lincoln, NE Send questions to