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10/30/2007
The Illinois Student Assistance Commission (ISAC) is revising the recently announced default fee policy for ISAC-guaranteed Federal Stafford and PLUS loans for the remainder of the 2007-08 academic year. As many of you have been made aware, due to a decision by the U.S. Department of Education (ED), communicated to ISAC on October 29, 2007, ISAC will no longer require lenders to pay one-half of the 1% federally-mandated default fee.
Effective December 1, 2007, ISAC will, as announced earlier this fall, pay one-half of the default fee on behalf of borrowers. However, we have revised the requirement that the lender pay the remaining half of the fee, and will continue to guarantee loans for lenders currently participating in our guaranty program. The Commission will consider the revised policy at its November 16th meeting.
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