Changes in legislation regarding the Federal Family Education Loan Programs (FFELP) and current credit market conditions have impacted lenders throughout the country. There have been many news reports on the unavailability of federal loans for the coming year. While it is true that some lenders have ceased to participate in the federal loan programs, there are others who are continuing to provide educational funding for students and their parents. Widener University wants to assure you that you will still be able to borrow through federal loan programs.
Some good news occurred on May 7, 2008 when President Bush signed into law H.R. 5715 which contains in the language of the bill, changes to the Federal Family Education Loan Programs that are effective for students and their parents on or after July 1, 2008. These changes affect the Federal Stafford Loan Program and the Parent Loan for Undergraduate Students (PLUS) Program. Undergraduate students' who are eligible for a Federal Stafford Loan, whether subsidized or unsubsidized, can now elect to borrow an additional $2,000.00 in Unsubsidized Federal Stafford Loan funds for the 2008-2009 academic year. Widener undergraduate students who received financial aid offers prior to the new legislation will be contacted about the increased loan amount. Continuing undergraduate students will automatically receive the increased amount as a part of their aid offer. Parents who are considering borrowing through the PLUS Loan Program will have a new deferment option beginning July 1, 2008. Parents can now choose to defer payments on a PLUS loan until six months after the date the student ceases to be enrolled at least half-time. Accrueing interest could either be paid by the parent borrower monthly or quarterly, or be capitalized quarterly.
There are, however, continuing issues regarding lenders and loan applications that our new and continuing students and parents should be aware of for the upcoming academic year.
Some of our undergraduate and graduate student borrowers may need to pick a new lender for Federal Stafford loans. We will be assisting those students as they plan for next year by working with American Education Services (AES) to issue a new Master Promissory Note (MPN). The MPN will be mailed to the student's home address. Students will need to pick a new lender and return the note, or complete the process online at http://www.aessuccess.org. Students who need to select a new lender can refer to our *recommended lender list and information under Federal Stafford Loans on the Undergraduate Loan Information page or the Graduate Loan Information page.
Some of our graduate student borrowers may need to pick a new lender for Federal GradPLUS loans. Graduate students who contact their lender for a loan next year and find they must select a new lender can refer to our *recommended lender list and information under Federal GradPLUS loans on the Graduate Loan Information page.
Some of our parent Federal PLUS loan borrowers may also need to pick a new lender. Parents who contact their lender for a loan for next year and find that they must select a new lender can refer to our *recommended lender list and information under Federal PLUS loans on the Undergraduate Loan Information page.
* You are not obligated to use our recommended lenders or guarantee agency. Students and parents are free to select any lender they choose. We encourage borrowers to review the terms and conditions of any loan they choose before incurring any debt. Lenders may change their fee structures and benefits at any time.
Please use this link to determine if your current lender will not be offering loans (revised 06/03/08):
Lenders who have suspended or terminated providing FFELP and/or Private Loans
For tracking all your outstanding federal education loans, borrowers can access the following website:
National Student Loan Data System
Students should also contact their lenders directly to determine what their fees and benefits will be for 2008-09 loans. Many lenders who had previously covered the cost of mandatory origination and default fees for Federal Stafford loans as a borrower incentive may not be doing so for next year. The maximum amount of fees associated with the Federal Stafford Loan Program for next year is set at 2.0%. (PLUS and GradPLUS loans have origination and default fees totalling 3.0% for next year).
If you require assistance, please be assured that we are here to help you. Contact Student Financial Services at finaidmc@mail.widener.edu or call Enrollment Services at 610-499-4161.