T.H.E. wants to remind schools that some guarantors may be instituting a 1% default fee beginning with new loans on or after July 1, 2008. We have reached out to our guarantor partners and the following chart illustrates their position on charging the default fee, based on information available at the time of this publication. Schools may decide to change their guarantor preference and may contact our customer service experts to discuss how to go about doing this. School-based software product setups may require changes to profiles and schools may want to consult with their appropriate vendor.
| Guarantor partner | Does the guarantor pay the default fee on behalf of the borrower after 6/30/2008? |
|---|---|
| ASA | No |
| ECMC | Yes – we received confirmation from ECMC they will continue to pay the default fee through 6/30/2009 |
| EdFund | No |
| Great Lakes | No |
| HESC | No |
| Texas - TG | Yes – we received confirmation from Texas they will continue to pay the default fee through 6/30/2009 |
Regardless of when the application was received by T.H.E., the effective date will be based on the funding date. Considering when the Department of Education plans to make funds available to lenders, we anticipate all new federal loans to be disbursed after July 1, 2008, so the chart above will apply.