Pheffer Announces Important Student Loan Information
Assemblywoman Audrey I. Pheffer has received information from the New York State Higher Education Services Corporation (HESC) regarding the matter that some students have received notice that their student loan lenders are dropping loans made to students in community colleges or some private institutions.
HESC indicates that, at this time, all students in NYS who have applied have been able to obtain a Federal Family Educations Loan Program (FFELP) loan with a lender. HESC is reaching out to the 349 New York State Colleges and universities that participate in FFELP to establish a dialogue concerning the status of lenders, and they have implemented changes to their processing system to provide updates on the progress of legislation. Additionally, they have created a Web resource that college and university administrators can tap for the latest information about student loan access.
The federal "Ensuring Continued Access to Student Loans Act of 2008," which was signed into law on May 7, authorizes the Secretary of Education to purchase loans from FFELP lenders which then can be used in individual states. HESC is designated as the Lender of Last Resort (LLR) and under this program would be authorized to have a plan that allows every eligible New York State resident to receive an LLR loan. HESC has developed plans that facilitate a simplified application process through the borrower's school of attendance where possible, and provide for regular hours of operation, borrower counseling, and electronic notices to borrowers of their loan approvals and guarantees.
HESC is the state agency whose mission is to help people pay for college. HESC guarantees federal student and parent loans, offers loan management services, and provides guidance for college planning. In New York State, HESC also administers the Tuition Assistance Program and other state specific grants and scholarships. For more information, visit www.hesc.com.