Palo Alto, California – July 15, 2009 – More than 83% of financial aid administrators responding to a recent Student Lending Analytics (SLA) survey indicated that they outsource their Perkins Loan program to an external servicer. The proposed Student Aid and Fiscal Responsibility Act calls for a significant expansion in Perkins Loan volume, including a significant increase in the number of schools participating in the program. These results are based on a flash survey of 317 financial aid administrators conducted by Student Lending Analytics between July 8th and July 9th, 2009. Here are several highlights from this survey (go to Student Lending Analytics blog to download the complete survey results):

• For most schools, Perkins Loans are small part of the overall financial aid package, with 72% of respondents indicating that it made up less than 4% of overall federal student aid
  • According to the College Board, Perkins loans made up about 1.6% of total federal loans for 2007-08
• 54% of respondents indicated that their volume of Perkins loans declined in 2008-09 with 27% experiencing more than a 20% decline
• 83% of respondents indicated that they outsource some or all of their Perkins Loan functions:
  • Collections (83%) and loan servicing (79%) were the most frequently cited activities outsourced
  • The four Perkins Loan servicers mentioned most frequently in the survey were ECSI with a 31% share with University Accounting Services (UAS), Campus Partners and Affiliated Computer Services (ACS) each having a 23% share
• In terms of promissory notes, 52% of respondents indicated they continue to have borrowers sign a paper copy, with 35% having an electronic process in place
• 76% of respondents indicated that their institutions would have difficulty providing institutional funds to reduce the cost of the Perkins Loan for their borrowers

ABOUT STUDENT LENDING ANALYTICS

Student Lending Analytics (SLA) provides research and advisory services to find the best lenders for students. SLA has recently launched SLA Private Student Loan Ratings to help students find the best private loans. SLA manages the RFI process for colleges and universities utilizing an objective, comprehensive and analytical approach. SLA’s Blog provides timely, insightful information about the student loan marketplace. SLA has NO affiliations with any student lenders. For additional information on Student Lending Analytics’ research and services, contact Tim Ranzetta at 650-218-8408 or visit www.studentlendinganalytics.com.

Posted 07/16/09 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.