To: Financial Aid Directors
From: Chuck Sanders, President and CEO
Date: February 5 , 2009
Re: Funding Status and Borrower Benefits for 2009-10
On behalf of our dedicated employees at SC Student Loan, I would like to thank you for your continued support of our loan programs and services. We are looking forward to serving you, your students and parents for the upcoming academic year. Today, I am writing to update you regarding our current funding status and changes to our borrower benefits for the 2009-10 academic year.
In late December, we began utilizing the U.S. Department of Education’s financing vehicle created by the Ensuring Continued Access to Student Loans Act, which provides us access to funds for the remainder of this academic year and the upcoming 2009-10 academic year. While this financing vehicle will ensure that we are able to fund all Federal Stafford, PLUS, and Grad PLUS loans, we will be forced to discontinue paying or rebating loan origination fees on behalf of FFELP borrowers for the 2009-10 academic year. Therefore, we will begin charging the permitted statutory loan origination fee for all FFELP loans with scheduled first disbursements on or after July 1, 2009.
While it is unfortunate that we have to remove this benefit, I am pleased to report that we will continue to pay the Federal Default Fee for all FFELP borrowers. Please be assured that SC Student Loan remains committed to fulfilling our nonprofit mission of providing college access for students and families in South Carolina who rely on education loans for pursuing higher education.
Thank you again for your continuous support of our organization and your understanding during this unprecedented global economic environment.