Background:  In recent days and weeks, we’ve all seen and heard stories in the media about various lenders who have chosen to withdraw from the Federal Family Education Loan Program (FFELP) which includes the Federal Stafford and PLUS Loan Programs.   For many lenders, such decisions were made as a direct result of recent failed securities auctions in the troubled bond market.  For students in Pennsylvania, one of the most prominent lenders to withdraw from student lending is AES/PHEAA.  (For additional details about AES/PHEAA’s decision, click here; for a copy of AES/PHEAA's letter to guidance counselors, click here).

Does This Mean AES/PHEAA is Going Out of Business   Absolutely  NOT.  AES/PHEAA will continue to operate and generate revenue by focusing on their other lines of business which include loan guaranty, origination and servicing of both federal and private student loans, as well as administering the Pennsylvania State Grant and Special Programs.   Serving as a lender was only one of their lines of business.

What Does This Mean to You for Accessing Student Loan Funds:    Although AES/PHEAA is no longer serving as a lender,  students still have access to hundreds of lenders statewide and approximately two thousand  lenders nationally who continue to participate in the Federal Stafford and PLUS (FFELP) Loan programs.  At SRU, our students have utilized a wide variety of lenders to provide their Stafford and PLUS Loan funds.   For the 2008-09 academic year, the SRU Financial Aid Office will continue to provide guidance to students who are borrowing through these programs if they want assistance in selecting a lender.  For 2008-09, new borrowers will be completing their Master Promissory Notes (MPNs) beginning in late May.    Our Financial Aid Office web page will be updated at that time with links to lists of lenders  and instructions for completing the Master Promissory Note.

What if I’m a Returning Student and AES/PHEAA Has Been My Lender?  AES/PHEAA is in the process of notifying their current borrowers of the need to sign a new Master Promissory Note for any new loans.   When completing that MPN, students will identify a new lender.   Again, the SRU Financial Aid Office webpage can serve as a useful tool to identify a new lender.

What if I Have Questions:  As always, SRU students and families are invited to contact the staff in the Financial Aid Office with any questions or concerns.  We can be reached by phone at 724-738-2044 and by email at financial.aid@sru.edu.   In addition, the SRU web page provides a wealth of information about other aid topics such as the application process, aid programs, debt management and more. In addition, the National Association of Student Financial Aid Administrators has published a Q&A about federal students loans that is available by clicking here.