New Federal Rules Protect Students and Help Borrowers Webinar
The U.S. Department of Education announced two final regulations to protect students and help borrowers. The new rules are designed to help college students avoid paying excess fees when using debit cards promoted by their schools. WHY were these rules issued? -see complete description below.
Click Here for Webinar Description and Audience
The U.S. Department of Education announced two final regulations to protect students and help borrowers. The new rules are designed to help college students avoid paying excess fees when using debit cards promoted by their schools. WHY were these rules issued? Government estimates show that nearly $25 billion in federal aid is issued on campus debit and prepaid cards annually; about 40% of college students attend a school that partners with a financial institution that provides funds through this method. The rules that were proposed in May were in response to consumer groups and government sources that cited troubling practices in college card agreements.
The proposed rules have been MADE FINAL and become effective in July, 2016. How will these rules impact your financial institution?
Part One: Protecting Students and Federal Student Aid (Presenter Deborah Crawford)
- Prohibit institutions from requiring students or parents to open a certain account into which their credit balances are deposited
- Require institutions to ensure that students are not charged overdraft fees if students select an account offered directly or indirectly by contractors that assist institutions in making direct payments of federal student aid
- Require an institution to provide a list of account options that a student may choose from to receive credit balance funds, where each option is presented in a neutral manner and the student’s preexisting bank account is listed as the first, most prominent, and default option
- Require institutions to ensure electronic payments made to a student’s preexisting account are as timely as, and no more onerous to the student than, payments made to accounts marketed through the institution
- Protect students from unreasonable account fees
- Safeguard taxpayer dollars
- Provide transparency regarding accounts offered to students by requiring disclosure of the agreements between institutions and financial account providers as well as the costs students incur
- Ensure students have a choice about how to receive their federal aid
- Prohibit the student’s personal information from being shared without their consent
Part Two: Easing Student Loan Debt (Presenter Susan Costonis)
- Starting in 2016; an expansion of the circumstances under which institutions may challenge or appeal a cohort default rate that appears artificially high because of a corresponding low rate of student borrowing
- Starting July 1, 2016; new procedures for FFEL Program loan holders to identify servicemembers who may be eligible for a lower interest rate under the Servicemembers Civil Relief Act (SCRA), enabling these borrowers to receive this important benefit automatically
- Starting July 1, 2016; A requirement that guarantors provide information to FFEL Program borrowers on repayment plans available to them after they rehabilitate their defaulted loans, to help ensure that borrowers have a smoother transition to regular repayment.
- A provision to allow lump-sum payments made on behalf of borrowers through student loan repayment programs administered by the Department of Defense to count toward Public Service Loan Forgiveness, similar to the application of lump sum payments for Peace Corps and AmeriCorps volunteers. This action assures that these borrowers benefit more fully from their public service employment.
Who Should Attend?
This informative session is designed for the following individuals: Senior Management, Marketing Directors, Student Loan Managers, Deposit Operations, Debit/Credit Card Managers, Compliance Officers, Customer Service Managers, and Auditors.
Click Here for Continuing Education Credits (CEC) Info
This webinar is recommended for 2.5 CE Credit Hours. Each attendee will receive a Certificate of Attendance for self-reporting of CE Credits.
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INCLUDES 7 DAYS OF ONDEMAND PLAYBACK! With this option, you will participate in the webinar (via the internet) as it is being presented. You will login to the webinar on your PC to view the PowerPoint presentation, and you have the option of using your PC speakers or a telephone for the audio. You can type and send your questions to the instructor. Many companies are now running their PC through an LCD projector allowing many employees to participate at the same time. And don’t worry if you miss the webinar, you can still view it for up to seven days after it takes place!
SIX MONTH ONDEMAND VIDEO:
With this option, you will receive an e-mail that contains a link to the PowerPoint slides (to download, print, and copy) as well as a link to the media player where you will view and hear the entire webinar just as it was delivered, featuring the full-color PowerPoint presentation with audio. You can pause, fast-forward and rewind as needed, which makes it an effective training tool. The weblink will be available to you (and anyone else in the company) for up to six months and can be accessed 24/7 as many times as you wish. Delivered via e-mail the day after the webinar takes place.
If you do not have internet access or want to make the webinar part of your training library, the CD-ROM Recording is a great option for viewing a webinar. You can pause, fast-forward and rewind as needed, which makes it an effective training tool. With this option, you will receive a download of the PowerPoint slides and a CD-ROM Recording (featuring PowerPoint presentation with audio) of the webinar via regular mail. Mailed 7 to 10 days after the webinar takes place.
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