On September 27, 2007, President Bush signed into law the College Cost Reduction and Access Act of 2007 (CCRAA) Public Law 110-84, which made changes to the Higher Education Act and, subsequently, regulations that govern student loans.

These changes may have an impact on the terms and conditions of your existing student loans. If you have questions associated with any of these changes, please contact us at 888-272-5543.

Stafford loan interest rates

Effective July 1, 2008, different fixed interest rates may apply to separate Federal Stafford loans made under the MPN depending on the date of the first disbursement.

Special consolidation provision

Effective July 1, 2008, a borrower may consolidate any outstanding FFEL loan into the William D. Ford Federal Direct Loan Program to take advantage of the public service forgiveness program. The public service forgiveness program cancels the remaining balance on any Federal Direct loan for a borrower who made 120 payments, starting after October 1, 2007, and who during that entire time held a job in certain public service fields.

Military service deferment

Effective October 1, 2007, a borrower who is serving on active duty or performing qualifying National Guard duty during a war or other military operation or national emergency may receive deferment for the period of qualifying service and an additional 180-day period following that service.

Active duty student deferment

Effective October 1, 2007, a borrower who is a member of the National Guard or U. S. Armed Forces current or retired reserve, and who is called or ordered to active duty while enrolled at an eligible school or within six months of enrollment, can receive upon conclusion of the active duty service deferment for 13 months or until re-enrollment in school, whichever is earlier.

New repayment plan option

Effective July 1, 2009, an Income Based Repayment (IBR) plan is available. Under this plan, the required monthly payment amount will be based on a borrower's income during any period when the borrower has a partial financial hardship. The maximum repayment period under this plan may exceed 10 years. Eligible borrowers who meet certain requirements after a specified period may qualify for cancellation of any outstanding balance on their loans.