A New Era in Student Loans
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On President Barack Obama's 100th day in office Wednesday, April 29, 2009, Congress approved a $3.4 trillion federal budget for 2010 that includes student loan reform - the elimination of student loan subsidies for banks and other lenders (and the Federal Family Education Loan Program, FFELP, as it exists today).
On September 17, 2009, the U.S. House of Representatives adopted H.R. 3221, also known as the Student Aid and Fiscal Responsibility Act of 2009 (SAFRA), by a vote of 253 to 171. SAFRA eliminates FFELP and mandates that all federal student loans be originated by the U.S. Department of Education. The Senate will still need to vote on its version of SAFRA before it can become law.
We support President Obama's commitment to making education a national priority and look forward to working with the Administration to improve student loan delivery and processing. Edfinancial Services remains dedicated to providing extraordinary customer-driven servicing and support to our industry partners and to the schools, students and families we serve.
Please continue to contact your Senators and Representatives if you have suggestions about student loan reform. |
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“There’s still a lot of work to be done in conference, and we plan to have a seat at the table for those discussions. This plan gives Congress the opportunity to keep the private sector involved in the student loan process, and that’s a good thing. As for the future of our companies, we’ll adapt and evolve. We’re developing new business models to continue our successful public/private partnerships. The people of Edamerica and Edfinancial Services have been doing the right thing for students, schools and families for over twenty years. That won’t change.”
- Tony Hollin, Chairman & CEO, Edamerica and Edfinancial Services