It is with great regret that I make the following announcement: As of today, May 20, 2009, NorthStar Education Finance, Inc., will suspend accepting new federal and private applications under the T.H.E. Loan Program.

NCHELP recently published information, which was confirmed by the Department of Education (DOE), that clarifies several aspects of the new hardship deferment regulations. Included in this clarification was the issue of whether a loan with a grace end date post-7-1-09 would automatically go into economic hardship deferment (EHD) status if the borrower had another loan already in deferment prior to 7-1-09. The DOE has now confirmed that loans with a grace end date post-7-1-09 would not be eligible to enter into the same EHD as the other loans.

Refer to May 6 article for updated information.

Students confused about when their loans can enter hardship deferment?

We’ve heard that some borrowers may have received information that was contrary to what T.H.E. has been sharing. Our customer service reps have talked to callers who heard that their Stafford loan would not be covered by the same hardship deferment as their GradPLUS or consolidation loan (if the deferment began at graduation). Rather, they were told that they would have to treat their Stafford loan separately in order to postpone its repayment, meaning they might have to apply for another deferment or consider forbearance, income-based repayment plans or other options.

If you can’t see, smell, taste or feel something, how do you judge it?

Many colleges and universities are working to figure out this exact problem when it comes to evaluating lenders based on their customer service. As the pricing differences of FFELP loans has become “vanilla” in many scenarios, customer service has certainly become the center of attention with many institutions.

If you have an RFI/RFP or need an update of T.H.E. information for 2009-2010, please remember to send your request our way. T.H.E. is eager to respond and will complete your request as thoroughly as possible.