Here's the skinny on Student loans from AES/PHEAA
Here's what PHEAA has to say:
Facts on Student Loans
Students, families, and borrowers have told us that recent media articles covering our decision to temporarily suspend our lending activities are alarming. Many feel this means PHEAA is no longer involved in providing student loans and funding through the Pennsylvania State Grant and Special Programs. Nothing could be farther from the truth.
Here are some basic facts to help you understand.
What is happening?
PHEAA has decided to temporarily suspend acting as a lender in the Federal Family Educational Loan Program (FFELP). This includes Stafford, Parent PLUS, Graduate PLUS, and Consolidation loans. PHEAA is still committed, as we have been for 44 years, to serve the financial aid needs for Pennsylvanians and other students from around the country.
Currently, for the 2007-2008 academic year, over 200 lenders continue to participate in our low-cost KeystoneBEST student loan program and we remain committed to meeting the borrowing needs of students and families. Although we will temporarily no longer issue loans from our own funds, we will continue to pay the 1% federal default fee for KeystoneBEST loan borrowers. View the growing list of 2008-2009 participating lenders.
Let us be clear, PHEAA is NOT going out of business. Rather we are changing some of our business practices to ensure we can best serve our customers during this difficult time. PHEAA will remain the organization most borrowers work with to receive and pay for financial aid. We simply won't be the lender, another bank or institution will.
Why is this happening?
Issues in the markets related to the sub-prime mortgage mess everyone is talking about have made it difficult for PHEAA to raise the cash it needs to fund student loans. Other banks and institutions who don’t have this problem will continue to work with PHEAA to ensure students and families have access to the money they need to pay for their education.
How will this affect me?
For most students, this will have little to no impact. We remain committed to Pennsylvania students and families. You can be assured that:
* We will continue to administer the Pennsylvania State Grant Program and other state-funded student aid programs.
* We will also continue to provide students and schools with other student aid programs and services, and help with the transition to other lenders who are prepared to pick up the additional loan volume.
* For most borrowers, AES/PHEAA will continue to service their new loans. This means you can still contact us whenever you have a question or problem.
Facts on Student Loans
Students, families, and borrowers have told us that recent media articles covering our decision to temporarily suspend our lending activities are alarming. Many feel this means PHEAA is no longer involved in providing student loans and funding through the Pennsylvania State Grant and Special Programs. Nothing could be farther from the truth.
Here are some basic facts to help you understand.
What is happening?
PHEAA has decided to temporarily suspend acting as a lender in the Federal Family Educational Loan Program (FFELP). This includes Stafford, Parent PLUS, Graduate PLUS, and Consolidation loans. PHEAA is still committed, as we have been for 44 years, to serve the financial aid needs for Pennsylvanians and other students from around the country.
Currently, for the 2007-2008 academic year, over 200 lenders continue to participate in our low-cost KeystoneBEST student loan program and we remain committed to meeting the borrowing needs of students and families. Although we will temporarily no longer issue loans from our own funds, we will continue to pay the 1% federal default fee for KeystoneBEST loan borrowers. View the growing list of 2008-2009 participating lenders.
Let us be clear, PHEAA is NOT going out of business. Rather we are changing some of our business practices to ensure we can best serve our customers during this difficult time. PHEAA will remain the organization most borrowers work with to receive and pay for financial aid. We simply won't be the lender, another bank or institution will.
Why is this happening?
Issues in the markets related to the sub-prime mortgage mess everyone is talking about have made it difficult for PHEAA to raise the cash it needs to fund student loans. Other banks and institutions who don’t have this problem will continue to work with PHEAA to ensure students and families have access to the money they need to pay for their education.
How will this affect me?
For most students, this will have little to no impact. We remain committed to Pennsylvania students and families. You can be assured that:
* We will continue to administer the Pennsylvania State Grant Program and other state-funded student aid programs.
* We will also continue to provide students and schools with other student aid programs and services, and help with the transition to other lenders who are prepared to pick up the additional loan volume.
* For most borrowers, AES/PHEAA will continue to service their new loans. This means you can still contact us whenever you have a question or problem.
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