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7/9/2009
As we continue our ongoing efforts to fulfill our mission of "making college accessible and affordable for all Illinois students", ISAC and IDAPP are pleased to announce our support of the recently unveiled "Student Loan Community Proposal". The Illinois Student Assistance Commission and the Illinois Designated Account Purchase Program have become signatories on the proposal, joining a coalition of entities from all sectors in the student loan industry in their support. Members of the coalition consider the proposal an endorsement of "the core principles of the (Obama) Administration's reform effort - using federal funds to guarantee the stability of student loan financing, eliminating subsidies to private lenders and generating historic savings for student financial aid - while maintaining choice, competition, superior service for students and schools, and preserving tens of thousands of local jobs in all 50 states."
Additional accomplishments of the proposal include the following:
- Allows schools to maintain the ability to choose local not-for-profit and state-based agencies to provide originations or servicing in their state;
- Permits current originators to continue to provide origination services if schools or students choose them, eliminating the massive transition risk that comes from requiring thousands of schools to immediately change programs; and
- Expands default prevention assistance, counseling, financial literacy and advocacy programs from guaranty agencies to all students and families.
Because we, at our core, are dedicated to Illinois students, and because for more than 52 years, we have tirelessly and proudly served the needs of those students, our decision to support the proposal was an easy one. As stated by Executive Director Andy Davis in his address at this year's ILASFAA Conference, our intention is to remain an active and vital player in the student loan industry in Illinois, whether it be through the Federal Family Education Loan Program (FFELP), Direct Lending, a combination of the two or some other variation. We are prepared to focus on and respond to the needs of Illinois students, families and schools, and are wholeheartedly committed to fulfilling the role that eventually evolves for us in this new environment.
Specific details about the Student Loan Community Proposal, including the legislative language, a list of signatories and a Fact Sheet, are accessible on the America's Student Loan Providers Web site.
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