College Board to Close Student Loan Program
Q & A's for Borrowers
Revised Date: September 20, 2007
1. I am in the process of obtaining a student loan from the College Board. Will my loan application be approved and funded?
Yes. If you borrow through the College Board Education Loan Program for the current academic year (July 1, 2007 through June 30, 2008), the College Board will make sure you get your loan as long as it is approved by October 15, 2007.
2. What happens to my approved, current College Board loan for the 2007-08 academic year?
Your loan will be disbursed on the schedule set by your school, and your borrower benefits will remain as long as you meet the eligibility requirements.
3. If my application is in process but not yet approved as of October 15, 2007, what do I need to do?
The College Board will cease accepting new loan applications after October 15, 2007. If your loan has not been approved by that time, you should contact the financial aid office at your school for further guidance.
4. What happens when I need to apply for a loan for the 2008-09 academic year?
The College Board has structured an arrangement with Sallie Mae to handle future loan requests using the same "Master Promissory Note" that you used for your College Board loan. If you want to move your loan to Sallie Mae, you do not need to sign a new promissory note.
You can also choose to borrow from a different lender. If you choose this option, please contact the financial aid office at your school for further guidance. Please note that Sallie Mae is both a lender and a servicer. This means that Sallie Mae can make your loan (lender) and, once you go into repayment, send you bills and collect your payments (servicer). If your new lender doesn't use Sallie Mae as a servicer, you could have a "split account," meaning that when paying back your loan after you leave school, you will have to make at least two, separate payments each month instead of one.
More information on Sallie Mae is available on their website: www.salliemae.com.
5. What are the implications of selecting a new lender?
If you choose Sallie Mae as your new lender, you will need to apply for a loan with Sallie Mae but will not need to sign a new promissory note.
If you decide to use a lender other than Sallie Mae, you will be required to sign a new "Master Promissory Note." Also, if that lender does not use Sallie Mae as a servicer, you could have a "split account." (See question and answer #4.)
6. I selected College Board as my lender because of its benefits for borrowers. Will I be able to get the same benefits through another lender?
It depends. Any benefits associated with your future loans will be determined, as in the past, on an annual basis by your lender. Contact either your school's financial aid office or your lender for further information and assistance.
7. Are the interest rates the same for all lenders?
Yes. By federal law, interest rates for Stafford and PLUS loans are set by the federal government. However, lenders may offer borrower benefits that reduce the interest rate. Check with the lender or the financial aid office at your school for more information and assistance.
8. What options are available to me for alternative loans previously offered through the College Board?
Borrowers who previously had an alternative loan through one of the College Board partners will still have access to those resources. You should contact your lender directly or consult with your financial aid office.
9. Who do I call with questions about my approved or existing College Board Stafford or PLUS loan?
Please call the Loan Servicing Center at (888) 272-5543.
