OGSLP Introduces Plan to Subsidize the Federal Default Fee
The current condition of the credit market and recent changes in federal legislation have created unique challenges for the student loan industry. In an effort to ease the burden on our customers and support the Federal Family Education Loan Program (FFELP), the Oklahoma Guaranteed Student Loan Program (OGSLP) is announcing that it will pay half of the 1% federal default fee for new loans guaranteed on or after June 1, 2008. The federal default fee, a 1% fee assessed on all Stafford and PLUS loans, is required by the Deficit Reduction Act of 2005 to help offset the cost of defaulted student loans.
“We realize that many of our lender customers have had to make tough decisions to stay in the FFELP. As Oklahoma’s designated federal student loan guarantor, we want to support our lender and school customers as they help borrowers reach their educational goals,&rdquo said Mary Mowdy, OGSLP Executive Director.
Beginning June 1, 2008 and continuing through June 30, 2009, all Stafford and PLUS loans guaranteed by OGSLP will qualify for the partial default fee subsidy. OGSLP will evaluate its default fee policy annually.
Operational questions may be directed to Penny Gandy, OGSLP School/Lender Support Services Manager at (405) 234-4364 or email@example.com.