Concerned about whether the loans you need to complete your education will be available when you need them? You're not alone. I sat down recently with Susan Ahern and Lynn Froleiks of the school's Office of Student Financial Services to discuss how the current financial market situation will — or will not — affect your ability to receive financial aid in the near future.

Even though the ongoing financial crisis has received considerable media attention recently, there is actually less uncertainty in the student loan market now than there was last spring, says Froleiks. This is good news for the 90% of Pierce Law students currently receiving some type of student loans through the school. If you have been awarded financial aid eligibility from Pierce Law for the 2008-09 academic year, the funds that you were offered this past summer will still be available in January to cover your spring semester expenses. Better yet, Ahern reports no anticipated changes in the way financial aid applications will be processed for the 2009-10 academic year.

Froleiks adds that the 5 or 6 big players in the student loan industry have all assured the school that federal funds will be available not only next spring but at least through the 2009-10 academic year as well. She shares the following communications she received from key loan providers:

"I can assure you the Access Group is currently having no federal funding issues and we have not had to put on hold any loan disbursements." —Lori Moore, School Services Rep, Access Group

"NHHELCO has entered the participation program (established through the Ensuring Continued Access to Student Loans Act in May 2008). This provides NHHELCO the liquidity it needs to assure that loans are available for student (and parent) borrowers. As you may know, the legislation allows for the Secretary of Education to purchase interests in a portfolio of loans by reimbursing NHHELCO when a disbursement has been made. This provides us the necessary liquidity to make all loans, as planned, as you and your students need."
—Tori Berube, Vice President, Product Marketing, NHHEAF

Froleiks points out that lenders are cautious but solid: they want to stay in the business. Consequently, she noted, several lenders no longer offer private loans for graduate students. Among the Pierce Law student body, this will primarily impact 3Ls who wish to obtain bar study loans, as this type of assistance is not offered by the federal government.

Two lenders still willing to offer private loans are Citizens Bank and Sallie Mae, although the availability of such loans from Sallie Mae is becoming more regulated. A note from Barry Feierstein, Executive Vice President, dated October 9, states, "Because of the continuing turmoil and uncertainty in the credit markets, Sallie Mae has made the difficult decision to tighten the underwriting on all our private student loan products...which will require applicants to meet higher credit standards...In addition, the unprecedented credit markets require us to adjust our private loan pricing." The pricing changes, he says, will be announced late in the month.

The Office of Student Financial Services cannot recommend one specific lender over another. For advice on choosing the lender that's right for you, visit www.elmselect.com. Although criteria may differ from vendor to vendor, if you qualify for financial assistance with one lender, you will generally qualify with another lender, as well. As a rule, Graduate PLUS loans have more stringent criteria than Stafford Loans. Unless you have a previous default, most students qualify for Stafford Loans.

Remember that if your lender does go out of the student loan business, you will not be absolved of liability from payment. You still have a contractual obligation to repay the loan as evidenced by the Master Promissory Note executed at the time of the issuance of your loan. Learn more > >

SAVE THIS DATE: Student Financial Services Office along with Lori Moore from the Access Group will be hosting a free workshop for Pierce Law students in Room 200 on Thursday, October 16 at noon. Topics will include budgeting, how to maintain good credit, wise borrowing habits, and an update on the status of the financial market. Spouses and significant others are also welcome to attend. Lunch will be provided. Watch your e-mail to RSVP.