The Department of Education is encouraging students to complete their FAFSAs online.

Washington, DC -- (ReleaseWire) -- 09/21/2007 -- The U.S. Department of Education has a new plan to simplify the distribution of its Free Application for Federal Student Aid (FAFSA) form. The department recently announced that it will no longer send paper copies of the form to colleges and universities.

In the past, the department has regularly mailed millions of FAFSA forms to schools. However, as of January 2008, schools will not receive paper copies of the form. In hopes of reforming the application system, the Department of Education is now encouraging students to complete the FAFSA online.

For the 2008-2009 academic year, the Department of Education will create a PDF version of the form that students can complete and submit for processing. This will be available for students to download from several federal financial aid websites, such as http://www.federalstudentaid.ed.gov. After students access the form online, they will be able to complete it on the computer or by hand and then submit it by mail for processing.

According to Higher Education Washington, Inc.'s NewsLine, students may still obtain paper copies of the FAFSA by calling the Federal Student Aid Information Center (FSAIC) at its toll-free number, 800-4-FED-AID (800-433-3243). By calling this number, students can request a maximum of three paper copies of the FAFSA, which they should receive in three to seven business days.

While schools will no longer receive paper copies of the FAFSA, they will be able to access the PDF from various websites. They will also have the option to order paper copies of the FOTW Worksheet, which provides instructions to students on how to complete the online FAFSA.

Submitting a FAFSA is the first step students take when applying for any federal financial aid, such as federal loans, grants, work-study, etc. The form provides the federal and state government and colleges with information to determine the student's eligibility for financial aid.

"The government needs to continue to simplify the process of completing a FAFSA and allowing students to apply for financial aid," said EdFed loan counselor Jennifer Munson.

"Our goal at EdFed is to help students realize their dream of earning their college degree—and helping graduates and professionals manage the student loans that can result from obtaining an education," Munson added.

About EdFed:

As a leader in the student loan industry, EdFed is dedicated to helping students and graduates realize all of their educational goals and meet their student loan and consolidation needs.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Those with federal student loans are advised to act fast and consolidate their loans with EdFed before October 1 to ensure that they receive as much savings as possible.

Pasadena, CA -- (ReleaseWire) -- 09/12/2007 -- With the College Cost Reduction and Access Act of 2007 only one step away from being passed, federal student loan borrowers have limited time to take advantage of EdFed's borrower benefits.

If this bill does indeed go into effect, it will cut about $21 billion from Federal Family Education Loan (FFEL) programs such as EdFed. This budget cut may very well lead to the elimination of borrower benefits. Thus, EdFed may no longer be able to offer interest-rate reductions after October 1. Borrowers with federal student loans need to act now to ensure they receive the savings that EdFed offers.

Currently, these money-saving benefits can lower borrowers' interest rates by as much as 1.25%, potentially saving them thousands of dollars over the lives of their federal student loans. These savings can be lost if this bill is passed.

"We've been keeping an eye on this legislation since the speculation began about its passing," said EdFed manager Carina Zaragoza. "It now appears that the proposed changes will be approved. It is crucial that all federal student loan borrowers understand the negative repercussions this bill will have on their education debt. The elimination of borrower benefits, essentially interest-rate reductions that translate into thousands of dollars in savings, will have a dire impact on borrowers."

EdFed helps students and graduates manage their multiple student loans through consolidation. This not only helps borrowers save a substantial amount of money, but it also helps them save time.

What's more, EdFed guarantees that once borrowers qualify for its interest-rate reductions, they can never be lost or taken away, regardless of the circumstances. After October 1, however, this offer may become moot.

"With the October 1 deadline only days away, borrowers must act now and consolidate their federal student loans immediately," said Zaragoza. "Doing so will give them the best chance to receive the savings they deserve."

To beat the upcoming deadline and save a substantial amount of money, borrowers can begin their federal consolidation applications by calling 800-821-5659 or visiting www.edfed.com today.

About EdFed:
As a leader in the student loan industry, EdFed is dedicated to helping students and graduates realize all of their educational goals and meet their student loan and consolidation needs.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Two new bills could result in budget cuts for FFEL program.

Pasadena, CA -- (ReleaseWire) -- 09/03/2007 -- Washington, DC, August 31, 2007—This week, a letter was sent by four agencies representing the Federal Family Education Loan (FFEL) Program to Congressional education leaders, asking that they reconsider the size of the budget cuts that would result from the passage of two new bills: the College Cost Reduction Act of 2007 and the Higher Education Access Act of 2007.

Written by the Consumer Bankers Association, Education Finance Council, National Council of Higher Education Loan Programs, and Student Loan Servicing Alliance, the letter was addressed to members of the Health, Education, Labor and Pensions Committee and the House Committee on Education and Labor.

According to the FFEL organizations, the two new bills will cut more than $17 billion in subsidies to lenders and guarantors participating in the FFEL program, which will be redirected to Pell Grants and other forms of aid.

"The bills make substantial cuts to the FFELP by reducing special allowance payments, increasing lender-paid origination fees, and reducing loan insurance. A preliminary assessment of these cuts suggests that the program will be changed permanently," the letter explains. "Borrowers will likely lose many, and in some cases all, of the borrower benefits currently offered by lenders."

Serving 80% of federal student loan borrowers and Title IV schools, the Federal Family Education Loan (FFEL) Program is the nation's largest source for student financial aid.

The letter continues, "We believe the budget cuts will make paying for college more expensive for some students—especially middle-income students who might not qualify for the expanded Pell Grant assistance. They would reduce the government's projected support for the FFELP over the next five years by around 70%."

According to Higher Education Washington, Inc.'s NewsLine, the bills have already received enough votes to pass through the House and Senate and are currently in the conference stage.

Anticipating that the bills will be approved in the final stage, some lenders have begun to inform their borrowers that their time to receive borrower benefits is limited or are considering dropping out of the program altogether.

The letter states, "The timing of the cuts being contemplated could not possibly be worse in terms of program stability."

"We hope that Congressional leaders will consider the value that FFEL programs offer to loan borrowers," said EdFed loan counselor Jodie Corzano. "Currently, with the borrower benefits that EdFed offers, we can reduce our borrowers' interest rates by up to 1.25%! This can potentially save thousands of dollars over the life of the loan for our borrowers."

About EdFed:

As a leader in the student loan industry, EdFed is dedicated to helping students and graduates realize all of their educational goals and meet their student loan and consolidation needs.

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For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

A new act is passed to help protect students and families with private educational loans.

Washington, DC -- (ReleaseWire) -- 08/07/2007 -- Yesterday, the U.S. Senate Committee on Banking, Housing, and Urban Affairs unanimously voted to pass a bill that will establish requirements for private institutions that lend educational loans. In light of the passing of the Student Loan Sunshine Act to protect students who borrow federal loans, the committee initiated this bill to give students the same protection when borrowing private loans.

The purpose of the new bill, known as the Private Loan Transparency and Improvement Act of 2007, is to prevent unfair and deceptive practices in private educational loans and eliminate conflicts of interest between lenders and school officials.

The act would ban private lenders from giving gifts of value over $10 to a college or university employee--this includes transportation, lodging, and meals. It would also require that private lenders disclose more information to borrowers than is currently being disclosed. This information includes the terms and costs of a borrower's loans such as the range of potential interest rates, whether the interest rate is fixed or variable, the need for a co-signer, finance fees and charges, and deferment options, to name a few.

The act was initiated by Senator Christopher J. Dodd (D-Conn). Dodd, who is currently serving as chairman of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, worked to develop the final version of the bill with Senator Richard Shelby (R-Ala.).

The Private Loan Transparency and Improvement Act will be voted on by the full Senate.

"The passing of this bill will ensure that students and families receive the best savings and values with their private educational loans," said EdFed's customer service manager, Jodie Corzano.

"It's important that with the rising cost of college tuition, students get the financial aid they need so that they don't walk away from the experience with a lifetime of student loan debt to pay off. At EdFed, we are doing our part to help students and graduates manage the loans that they borrow while in school and save as much money as possible."

About EdFed:

As a leader in the student loan industry, EdFed is dedicated to helping students and graduates realize all of their educational goals and meet their loan and consolidation needs.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

New reports indicate that over 75 percent of American students rely on some type of financial aid to fund their educations.

Pasadena, CA -- (ReleaseWire) -- 08/02/2007 -- According to a recent report, more than three-quarters of American undergraduate students receive some type of financial aid to assist them with paying for college. The report, which was released by the U.S. Department of Education's data collection and analysis division, also shows that financial aid comes from the federal government for more than 60% of these students.

The National Center for Education Statistics also reported in its Digest of Education Statistics for the 2005-2006 academic year that 54% of part-time undergraduates received financial aid. Of that 54%, 38% received federal aid.

According to Higher Education Washington, Inc.'s NewsLine, the Digest also reported the following statistics on financial aid:

• Full-time students received an average of $9,899 per year in financial aid.
o Of that aid, the average amount of federal aid was $7,304.

• Almost 50% of full-time students borrowed educational loans.
o 48.5% of full-time students took out federal loans.
o 9% of full-time students took out private loans.

• Part-time students received an average of $4,860 per year in financial aid.
o Of that aid, the average amount of federal aid was $4,765.

• 25% of part-time students borrowed educational loans.
o Almost 24% of part-time students took out federal loans.
o Almost 4% of part-time students took out private loans.

• The average cost of public four-year universities is more than $13,000 per year.

• The average cost of private four-year universities is more than $36,000 per year.

The entire report will be available in print on August 31; it can be accessed online now at http://nces.ed.gov/pubsearch/pubsinfo.asp?pubid=2007017.

"Statistically, more and more students must turn to student loans to help fund their education," said EdFed loan counselor Jennifer Munson. "Luckily, EdFed is ready to help these students manage all of their student loan debt."

"EdFed offers several services to students and professionals to assist them with the loans that they borrowed to pay for their schooling," Munson added.

To learn more about the money- and time-saving services EdFed offers, visit http://www.edfed.com or call 800-821-5659.

About EdFed:

As a leader in the student loan industry, EdFed is dedicated to helping students and graduates realize all of their educational goals and meet their student loan and consolidation needs.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

This week, Senator Bayh initiated a bill that would allow active duty soldiers and their spouses to defer interest on their student loans.

Washington, DC -- (ReleaseWire) -- 07/25/2007 -- Active duty soldiers may catch a break on their student loans if a new bill goes into effect. Introduced on Tuesday by Senator Evan Bayh (D-IN), the Interest Relief Act would temporarily suspend interest from accruing on the student loans of active duty soldiers and their spouses for up to five years.

This program would be available to active duty soldiers serving in any military branch, including the National Guard and reserve units, and their spouses, according to Higher Education Washington, Inc.'s NewsLine. The only stipulation is that the student loans must be taken out through the Federal Direct Loan Program, which provides loans directly from the U.S. Department of Education.

Currently, members of the military may defer payments on their student loans while serving on active duty. However, interest still continues to accrue, which can be a costly burden for soldiers to come home to. The Interest Relief Act would help soldiers avoid this financial burden.

According to information from The Evening News and The Tribune, the bill would help soldiers who have been active for 12 to 15 months save an average of $1,183 and save $1,479 in interest while active.

Senator Bayh said, "By deferring interest accrual for those who have student loans, we remove one more hurdle that our soldiers and their families face when they are planning their future after active duty service."

"It's important that we provide the people who put their lives on the line for our country with options for their student loans," said EdFed student loan counselor Jennifer Munson. "This bill will help to alleviate some of the financial burden that student loans can have on people, especially when they, as soldiers, have already made so many sacrifices."

"At EdFed we also provide options to assist any students or graduates with managing their student loan debt with our consolidation programs," said Munson.

To learn more about the services EdFed offers, visit www.edfed.com.

About EdFed:

As a leader in the student loan industry, EdFed is dedicated to helping students and graduates realize all of their educational goals and meet their student loan and consolidation needs.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Washington, DC -- (ReleaseWire) -- 07/23/2007 -- A report was released this week that shows low-income working adults are less likely to gain college educations than their higher-income counterparts.

According to the report by the Institute for Higher Education Policy (IHEP), entitled "College Access for the Working Poor: Overcoming Burdens to Succeed in Higher Education," college is out of reach for many adults who fall into the category of poor working adults.

The U.S. Census Bureau suggests that poor working adults can be defined as those "who worked but who nevertheless fell under the official definition of poverty"; those "who were in poverty and had at least one working family member"; and "people who may not necessarily be in poverty according to the official measure of poverty, but who fall below some percentage of the poverty level," according to the IHEP report. The report shows that nearly 20 million Americans fit into this category.

According to the report, with the average cost of attending college close to $13,000, poor working adults who earned an average of $19,000 a year in 2005 could not afford to pursue college education. Even with the assistance of financial aid, many times the price is just too high for prospective students who fall under the poor-working-adult category.

The report found that many poor working adults who go to college must keep working full-time jobs, which leads many to enroll in school part-time. The IHEP reports that although this choice "offers a more financially viable option for many working poor adults, it likely impacts the amount of grants for which these students qualify and is associated with lower degree attainment." For example, in 2003–2004, 47% of working poor adults were enrolled in higher education half-time or less. The report also showed that family responsibilities kept poor working adults from attending school full-time.

To balance the preceding factors, the report suggests providing tax relief to working poor students, increasing eligibility for working independent students, assisting students on the weekends with financial aid counseling, and other student services.

"It's important that students in all social classes have the same opportunities to pursue college degrees," said EdFed customer service manager Jodie Corzano. "It's our goal at EdFed to assist all students in realizing this dream."

About EdFed:

As a leader in the student loan industry, EdFed is dedicated to helping students and graduates realize all of their educational goals and meet their student loan and consolidation needs.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

The Governor of Maine signed a bill this week that will assist graduates with paying off their student loans in exchange for staying in the state to work.

Augusta, ME -- (ReleaseWire) -- 07/09/2007 -- This week, Governor of Maine John E. Baldacci signed LD 1856, a bill that will allow college graduates tax credit for repayments on their student loans in exchange for their commitment to stay in the state to work.

Known as Opportunity Maine, this bill will assist graduates with paying off their student loan debt, which can be a huge burden on those entering the workforce and beginning careers. The hope is that Opportunity Maine will help strengthen Maine's economy by keeping productive, well-educated citizens in the state. Statistics show that Maine has 30% fewer citizens with college degrees than the rest of the New England states and that its citizens make 30% less than those in the rest of the New England states, according to the Higher Education Washington, Inc., NewsLine.

According to a press release from the governor's office, Governor Baldacci said, "Opportunity Maine is a prime example of the innovation and commitment that young people have to the state of Maine. Mainers love this state and want to stay here after graduation. That's what this bill is all about. These are our future leaders, and we can't afford to lose them."

Approved unanimously by the state's House last month and passed by a large margin in the Senate, this new bill will also benefit employers if they choose to pay off their employees' student loans. Doing so will allow employers to receive tax credits, according to information in the NewsLine.

"This is a wise investment in our children's future and our state's economic future, and I believe it will pay huge dividends," said Governor Baldacci.

EdFed is also doing its part to help graduates in every state manage their student loan debt. According to EdFed loan counselor Jennifer Munson, "EdFed has helped students all over the country save thousands of dollars over the life of their loans by consolidating their multiple student loans into one easy-to-manage loan."

About EdFed:

As a leader in the student loan industry, EdFed is dedicated to helping students and graduates realize all of their educational goals and meet their student loan and consolidation needs.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm