November 2 , 2005
Volume 2005 – Issue 57

ED Responds to FSA Questions

In response to a number of issues that have been raised recently, the U.S. Department of Education released Dear Colleague Letter GEN-05-16 on October 27, 2005. This DCL addresses the following topics:

1. The requirement for a signed promissory note for loan funds to be counted as "aid that could have been disbursed," or to be disbursed as a late disbursement;

2. The use of Web sites to provide required notifications and disclosures directly to students;

3. Additional unsubsidized Stafford loan amounts for an otherwise eligible child of a parent who is not a U.S. citizen or permanent resident;

4. Bankruptcy and eligibility for Parent Loans for Undergraduate Students (PLUS) and additional unsubsidized loan amounts;

5. Free Application for Federal Student Aid (FAFSA) questions and same-sex marriage;

6. Asset valuation of a rental unit within a principal place of residence in need analysis;

7. The definition of a veteran;

8. The treatment of combat pay;

9. The use of stored-value cards and other alternative methods of managing Title IV funds;

10. Debit cards and third party servicers; and

11. The Reserve Educational Assistance Program (REAP or Chapter 1607).

Please review this DCL for current guidance on any of the above issues.

 

Any questions related to this Bulletin should be directed to UHEAA Policy and Training at 801.321.7166 or by e-mail to mjohnson@utahsbr.edu.