Lenders
The Congress of the United States passed The College Cost Reduction And Access Act (H.R. 2669) and the amendments which are effective on Oct.1, 2007. Certain changes are effective to the FFEL (Federal Family Education Loan) Loan Program immediately.
The Montgomery College Office of Student Financial Aid is pleased to announce our recommended lender list for the Federal Family Education Loan Program (FFELP) Stafford and PLUS loan programs for 2009- 2010 aid year.(Bank of America will cease originating Stafford Loans on December 5, 2009. Please choose another lender if your loan has not been guaranteed.)
• Discover Loans
• EdAmerica
• National Education
• PNC Bank
• Sallie Mae
• SunTrust Bank
Montgomery College (MC) has always maintained a recommended lender list as part of our consumer information. In spring 2008, MC sent a Request for Information (RFI) to 21 lenders. We requested information concerning the lenders€™ borrower benefits, customer service, bilingual
support, and default prevention programs. We received ten responses and a loan committee comprised of students, faculty, and staff chose seven lenders to recommend to our students.
Although the current lenders are charging origination fees, these lenders will continue to offer great customer service to the MC student population. Students are not obligated to choose a lender from our recommended list. It is your right as a student borrower to choose any lender you desire. When selecting a lender not on our list, please compare the benefits and ask if the lender participates with Montgomery College.
As we receive details from each lender we will revise the table below. At the moment, we appreciate your patience and ask that you visit the lender at the link which they provided for their latest summary of fees and conditions.
Review lender benefits for the lender you have already selected. Please be certain you have received an award letter from Montgomery College before you E-sign your Federal Stafford MPN. Contact us if you need help (240-567-5100).
Remember you must use the MC Financial Aid Loan Application available only from MC. Do not apply to the lender online.
Normally, two fees will be deducted from your loan funds and are included in the amount you will be responsible for paying back. As of July 1, 2008, a 1 percent origination fee is charged by the U.S. Department of Education, and a federal default fee of up to 1 percent may be charged by the loan guarantor. See individual lenders web site for their most recent updates.
Lenders for 2009-10
Lender Benefits
For 2009/2010 the majority of the lenders will reduce the disbursement of the loans by 1.0% default fee based on the particular guarantor and .5% Origination fee unless otherwise noted.
| Discover Loans Zero fees for borrower applications received prior to 09-01-09 with a disbursement prior to 10-01-09 |
Stafford Loans
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| Ed America The origination fee is 0.5% and the default fee charged by the guarantor is 1%. |
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| National Education (You must use the MC loan application) The origination fee is 0.5% and the default fee charged by the guarantor is 1%. |
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| PNC Bank The origination fee is 0.5% and the default fee charged by the guarantor is 1%. |
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| Sallie Mae The origination fee is 0.5% and the default fee charged by the guarantor is 1%. |
| Sun Trust The origination fee is 0.5% and the default fee charged by the guarantor is 1%. |
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