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Changes in Student Loan Industry 2008 FAQ
Q. How do the recent changes in the student loan industry affect students who borrow Stafford loans?
A. Several lenders have suspended participation in the FFELP programs. This will not affect your ability to borrow Stafford loans in the 2008-09 academic year. Students will simply need to select a new lender and sign a Master Promissory note.
Q. How will students be notified if their lender is no longer participating?
A. Students will be contacted by the lenders and the school .
Q. Will these issues affect Parent PLUS and Graduate PLUS loans programs also?
A. Yes, borrowers in the PLUS programs will also be notified if their lender no longer participates.
Q. Where do I find a new lender?
You can select a a new lender online at www.aessuccess.org
. Look under the heading "Student Loans" for information on lenders who currently participate in Stafford and PLUS programs
Q. Will I have to compare lenders to obtain the best interest rate for my loan?
A. The Stafford loan has a fixed interest rate of 6.8 % regardless of lender choice. The PLUS loan carries a fixed rate of 8.5.%. However, lenders do offer borrower benefit programs that should be considered when choosing the lender.