Dear UVA student:
As you may have heard, there have been many changes in the student loan industry.
WE WANT YOU TO KNOW THAT LOAN FUNDS ARE AVAILABLE AND STUDENTS HAVE A CHOICE OF LENDERS.
As much as we have tried to maintain our current process, circumstances from outside the
University will have an impact on the student loan process for the 2008-2009 academic year.
Because of changes in Federal regulations, all schools that choose to
maintain a preferred lender list must have a minimum of three unaffiliated
lenders by July 1, 2008. This change, along with other changes in the
Federal regulations, disruptions in the marketplace for lenders and an
unsuccessful attempt through a Request for Proposal process to secure
attractive rates for UVA students, has led UVA to declare itself "LENDER
NEUTRAL" beginning July 1, 2008.
WHAT DOES THIS MEAN FOR UVA STUDENTS AND PARENTS SEEKING FEDERAL LOANS FOR 2008-2009?
1. Federal loans have fixed interest rates and low fees, regardless of your lender.
2. However, other borrower benefits that lenders have used to attract students and
parents have been reduced at most every lending institution. Borrowers will need to
conduct a wider search to find lending institutions offering benefits greater than the
Federal minimums. To assist students in searching for a lender, please refer to our
student loan information page, where we have listed the banks that our students have
used in the past year: http://www.virginia.edu/financialaid/loans.php
3. Students MUST reaffirm their lender choice for the 08-09 academic year.
Because benefits have changed for most lending institutions from 07-08 to 08-09,
instead of automatically renewing your lender choice from the previous year, we are
asking that students reaffirm their lender for 08-09. To make this process easier, you
may e-mail, firstname.lastname@example.org
and give us your complete name, last four
digits of your Social Security Number (DO NOT send the entire number) and either
1) State that you would like to maintain your previous lender, or 2) Tell us who you
would like your new lender to be. Another way to respond is to complete our
standard Financial Aid Change Form (available on our web site) and complete the
section for Student Loan Lender of Choice. We ask for your patience as we make
these changes in response to a market that seems to change daily.
Please contact our office if you have any questions.
Student Financial Services