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.