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1/31/2008
ISAC is pleased to announce that we will pay half of the federally-mandated 1% default fee for all ISAC-guaranteed Federal Stafford and PLUS loans for the 2008-09 academic year. ISAC has chosen to continue partially paying the fee as a benefit to our student loan borrowers. Paying 50% of the federal default fee on behalf of borrowers reduces the cost of borrowing and results in a greater percentage of loan proceeds being available to offset educational expenses.
As a resource for students and parents who borrow through the Federal Family Education Loan Program (FFELP), a List of ISAC's Participating Lenders is available within the Student Zone at collegezone.com. This list is displayed in descending order of loan volume guaranteed through ISAC, and identifies lenders that have agreed to pay the other 50% of the default fee on behalf of borrowers. Student loan borrowers are encouraged to select lenders - whether from the list within the Student Zone or another source - based on which one(s) best meet their individual needs.
This benefit for borrowers, as well as all other agency programs and activities which facilitate access to education, are supported solely by ISAC's loan operations. All state funds allocated by the General Assembly are awarded to students and paid directly to colleges and universities on their behalf. For that reason, we greatly appreciate the support received through participation in ISAC's loan programs, as the revenue generated is reinvested into programs and benefits for students.
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