In the quarter, a few announcements have been made that will ensure you remain compliant. If you don’t follow these daily you could miss important or impactful information. Here are a few of the top takeaways from recent Department of Education updates.

1. Verification Changes

Announced May 18, 2022 and for the remainder of the 2022-2023 award year Verification Requirements are once again waived for all verification except identity/Statement of Educational Purpose for Verification Tracking groups V4 and V5.

2. Voter Registration

Department reminds schools of the requirement to “make a good faith effort to distribute a mail voter registration form, requested and received from each State, to each student enrolled in a degree or certificate program and physically in attendance at the institution.” This can be done by electronic means as long as the email is only regarding voter registration and to individual students and has an attachment
with a form or link to a website to download the form. Schools should send information at least 120 days prior to the state’s deadline for registering to vote.

3. Perkins

Due to the pandemic, the mandatory assignment of Federal Perkins loans in default more than two years is extended to June 30, 2023 (extended by 1 year), but school’s will need to provide a reason the original deadline of June 30, 2022 could not be met.

4. DL Interest Rates

As a reminder interest rates are determined June 1st for the upcoming award year. For Federal Direct Student Loan Program loans first disbursed on or after July 1, 2022 through June 30, 2023 are:

2022-23 Interest Rates for Direct Loans
First Disbursed on or After July 1, 2022 and Priorto July 1, 2023
Loan Type Borrower type Fixed Interest Rate
Direct Subsidized Loans Undergraduate Students 4.99%
Direct Unsubsidized Loans Undergraduate Students 4.99%
Direct Unsubsidized Loans Graduate/Professional Students 6.54%
Direct PLUS Loans Graduate/Professional Students and
Parents of Dependent Undergraduate Students
7.54%

 

Of course, this list could go on and on. So let our financial aid and compliance experts help your department boost its efforts. Contact us today to explore options. Get FA Solutions and ECM today!
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