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FAP860: Brazos, Northstar, and PHEAA exit student lending

August 13th, 2008

FAP860: Brazos, Northstar, and PHEAA exit student lending

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Student Financial Aid News
+ NASFAA and Bond Buyer: “Three of the largest nonprofit student loan lenders have temporarily withdrawn from lending in the Federal Family Education Loan program despite a high-profile plan by the Department of Education designed to assist non-bank lenders in financing student loans,” The Bond Buyer reports. “Brazos Higher Education Service Corp., NorthStar Education Finance Inc., and the Pennsylvania Higher Education Assistance Agency, historically some of the largest issuers or obligors of tax-exempt debt backed by student loans, have suspended their FFEL lending because they cannot secure crucial ‘bridge loans’ that they need to participate in a new, short-term liquidity program run by the Department of Education, their officials said. Specifically, DOE officials told lenders that once they tapped a line of credit and received bridge financing, the lenders could disburse their student loans, after which they would be eligible to borrow funds through the department once a week, via a ‘custodian.’ But details of the program - many of them technical - remain unresolved and lenders say they have not had enough time to find any bridge lender comfortable with it.”
+ Wow.
+ As always, we’re still open for student loans

Scholarship Update
+ Cappex $1,000 video game design scholarship
+ For anyone pursuing degrees in video game and interactive media design
+ November 30, 2008 deadline
+ Details at our free college scholarship search site

Mail Bag
+ Dan writes in: My kids are too young (thank god) to be looking at college-level scholarships, but looks like you have some great resources.
+ Actually, just occurred to me that I should see what scholarship opportunities ARE available for private schools in the 3-6 year old range. Any pointers?
+ Not nearly as much! Private schools typically don’t have much in the way of scholarships because the public school system provides a taxpayer funded alternative
+ Cheap textbooks eBook on the way - email me and you’ll get a copy!

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