Financial Aid Administrators Oppose New Preferred-Lender List Rule
The National Association
of Student Financial Aid Administrators has asked the Department of
Education to reconsider its interpretation of a new rule that requires colleges to have at least three student
loan lenders that are not affiliated with each other on their preferred-lender lists, according to an article by
Kelly Field in The Chronicle of Higher Education (“Aid Administrators Urge Reconsideration of Rule on Preferred-Lender Lists,” April 28, 2008).
In a letter sent to the Department of Education, NASFAA
President Philip Day, Jr., expressed members’ concerns that the rule is being interpreted too broadly and “could not
come at a worse time.”
Financial aid officers are presently dealing with the uncertainty about access to student loans and many have
already created their preferred lender lists, which under the Education Department’s new three-lender rule would
have to be revised.
With peak student loan processing season currently underway, financial aid administrators fear that the rule,
expected to go into effect in July, would severely limit students’ borrowing options.
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