On July 1, 2009, President Obama signed into law H.R.1777 – a bill that makes technical amendments to the Higher Education Act. The effective date of these changes is August 14, 2008, as if enacted by the Higher Education Opportunity Act of 2008, unless otherwise specified.

Below are important changes this law makes to the student loan program.

Entrance Counseling

  • Clarifies that guaranty agencies and lenders are permitted to perform financial aid entrance counseling for students on behalf of a school.

Loan Rehabilitation

  • Permits guaranty agencies to assign defaulted loans eligible for rehabilitation to the Department until October 2011 if, due to market conditions, they have not been able to sell these loans to eligible lenders.

Treatment of Federal Veterans’ Educational Benefits

  • Moves up the effective date ensuring veterans’ educational benefits are excluded in determining a veteran’s eligibility for federal financial aid from July 1, 2010 to July 1, 2009.

Private Loan Self-Certification Form

  • Excludes Expected Family Contribution (EFC) from information that must be given to students for the private loan self-certification form.


Questions regarding this guidance should be directed to the Office of Regulatory Compliance at 518 473-3986, toll free at 1-866-431-HESC (1- 866-431-4372); press 6, or askpolicy@hesc.org

Date Posted: 7/6/09