DENVER, CO, May 8, 2009 - College Assist, a national guaranty agency in the Federal Family Education Loan Program (FFELP), has announced that it will continue to subsidize half of the one percent federal default fee on behalf of students and parents on loans through June 30, 2010. This will be the fourth year the organization has paid all or a portion of the mandated fee for Federal Stafford and PLUS Loan borrowers.
"At College Assist, we are committed to helping families pay for higher education," said
Director Debra DeMuth. "Being able to help subsidize the default fee for students and parents means we can reduce their borrowing costs and ease their repayment responsibilities. Our mission is to assist students in pursuing their postsecondary education."
The default fee subsidy is expected to save student and parent borrowers $5 million and assist approximately 175,000 students and parents in the upcoming school year.
In July 2006, federal legislation aimed at reducing the overall cost of student loans required guarantors to deposit an amount equal to one percent of all Federal Stafford and PLUS Loans. The fee is intended to ensure guarantors have adequate funding to support their efforts to help avert student loan delinquency and default.
About College Assist
College Assist’s mission is to support student access and choice to postsecondary education by ensuring the availability, effective delivery, and responsible management of educational financing and by providing quality service to all program participants. College Assist is dedicated to helping students, parents, and schools navigate college financing from start to finish. College Assist provides excellence in FFELP default prevention; MPN processing; and guarantee, origination, and disbursement services to students, parents, schools, and lenders nationwide. College Assist guaranteed more than $3.7 billion in new and consolidated student loans in 2008 and currently manages a student loan portfolio worth more than $12 billion, including consolidation loans. Visit www.college-assist.com or call (303) 305-3000 for more information.
Posted 05/11/09 to www.NASFAA.org. Posting of press releases is done as a service to Members and does not imply endorsement or support by NASFAA. NASFAA does not review this information for content or accuracy.
