Federal Loan Funding Update:
T.H.E. plans to make available federal Stafford, PLUS and GradPLUS loans through the “Ensuring Continued Access to Student Loans Act of 2008.” We are now accepting applications for these federal loan programs but potential borrowers should be aware that the Department of Education will not make funds available to lenders under this program until sometime in July 2008. Until the Federal Register notice is published, as noted in DCL GEN-08-08 , we are waiting for final definition of the terms as well as guidance on the specific requirements for participation and implementation of the funding process.
The Department indicated that preliminary term sheets that would explain the funding conditions for lenders were expected last week. To date, nothing has been received. The Federal Register notice the Department is to publish will include the final prices, terms and conditions. Senior administration officials at the Department have informed us that the target date for publication is the end of June. Lenders are urging the Department to act as quickly as possible on this matter, seeing how the Federal Register notice must be published before lenders can implement plans and gain access to funding.
We will need to track loans funded through this process by using a unique lender code. Schools will notice the lender code change if they receive electronic response files or electronic disbursement files. However, schools may continue to certify applications using our existing lender codes. Please contact our customer service experts with any questions.
Private Loan Funding Update:
T.H.E. is now fully processing and funding program-specific private applications:
- Medical Residency and Relocation
- Health Professions (Nursing, Optometry, OT, PT, PA, Vet Med, Podiatric, Pharmacy, Health Admin, Public Health)*
- Bar Prep*
*Prior borrowing relationship may be required for Bar Prep. A cosigner is required for Health Professions and may be required for the other programs.