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7/8/2008
With the start of a new academic year, we'd like to give you an update on some activities taking place at ISAC as we work to fulfill our mission of making college affordable for Illinois students.
Although we're faced with upheavals in the federal guaranteed loan programs, the shortage of state and federal funds for higher education and need-based grant aid, and the rising cost of college attendance, we are more determined than ever to help pave the way to college for Illinois students. We are maintaining our high standard of quality in the delivery of our financial aid products and services, and we continue working as a guarantor to keep down the cost of borrowing for students. Despite the challenge it poses in light of cuts made by the federal government in payment for our guarantee services, we are paying 25% of the federally-mandated 1% default fee.
In the coming academic year, we will also strive to meet the borrowing needs of Illinois students. ISAC's lending division, the Illinois Designated Account Purchase Program (IDAPP), and many other lenders are ready to serve the Federal Family Education Loan Program (FFELP) Illinois borrowers for 2008-09. ISAC/IDAPP will be funding FFELP loans through the lender liquidity programs as authorized by the Ensuring Continued Access to Student Loans Act of 2008 (ECASLA), and offered through the U.S. Department of Education (ED). In order to participate in the liquidity programs, all lenders must abide by the terms and conditions established by ED. Under these terms, eligible loans exclude FFELP Consolidation loans and any loans having ongoing borrower benefits other than a 0.25% interest rate reduction for borrowers paying their accounts using an automatic monthly debit process. As a result, in order to preserve our ability to use ED financing, ISAC/IDAPP will be unable to offer either Consolidation loans or any borrower benefits other than the 0.25% rate reduction for automatic debit payments. Please click on the word IDAPP for more details. We are actively pursuing other financing sources, and if capital should become available, we are committed to providing the best possible loan terms we can offer to our Illinois borrowers.
For a full list of lenders participating with ISAC's guarantee, please access the list in the Student and Parent Zones at collegezone.com. If students attending your institution have any difficulty obtaining a lender, please contact ISAC's School Services immediately at 866.247.2172 or at schoolservices@isac.org so we can provide assistance.
In short, ISAC remains committed to our partnership with you, and to working together with you as we serve the families of Illinois.
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