July 8, 2009

Technical Amendment May Affect FAFSA, Veterans' Benefits

As reported in the March 31, 2009 Legislative Update, Education and Labor Committee Chair George Miller (D-CA) introduced a bill making technical corrections and conforming changes to the HEA. The bill, H.R. 1777, was signed by the President on July 1.

Highlights of the bill:

• Ensures veterans’ education benefits are not counted in aid eligibility calculations beginning in the 2009-2010 academic year.
• Provides grants for military dependents whose parent or guardian died performing service in Iraq and/or Afghanistan after September 11, 2001.
• Expands the automatic-zero policy to students whose parent or guardian died performing service in Iraq and/or Afghanistan after September 11, 2001.
• Allows guaranty agencies to assign rehabilitated loans to ED.
• Clarifies the Secretary’s authority to purchase previously rehabilitated loans from lenders.
• Clarifies that in-person entrance and exit counseling functions can be provided by lenders and guarantors.

OGSLP will continue to keep you informed about legislative activity. We encourage you to visit our Legislation Page often to view important updates and access more detailed information. If you have questions, please contact our Policy, Compliance and Training department at 405.234.4432 or pct@ogslp.org.