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5/22/2008
The U.S. Department of Education (ED) on Wednesday, May 21st, issued a letter to Federal Family Education Loan Program (FFELP) lenders from Secretary of Education Margaret Spellings outlining ED's plan for ensuring continued student and parent access to federal student loans. The letter outlines ED's four-step approach to meeting the current challenges faced by the student loan industry.
The steps include:
- ED's ability to purchase loans from lenders and to offer lenders access to short-term liquidity,
- exploring programs that might reenergize capital markets,
- an enhanced lender-of-last resort program, and
- although unlikely to be necessary, the capability to expand the direct loan program.
We encourage all FFELP participants to take a few moments to review the letter to learn the details of the steps listed above. A link to the letter is available in collegezone.com's e-Library, #11, Federal Information through the Electronic Announcements link.
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