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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 2008 - 2009 aid year.


Bank of America
EdAmerica
PNC Bank
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.
printer iconBank of America Borrowers ONLY: How to E-sign your MPN

Bank of America borrowers. Only go to the web site to sign your Master Promissory Note for Bank of America if your file has been approved at MC and your loan was sent out to the Guarantor from Montgomery College.

2. All other borrowers unless specifically notified

 

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).
Click the MPN E-sign or the graphic to go to the Master Promissory Loan Note electronic signature web site for Montgomery College. Click on the name of a lender below to see descriptive information. Click on the highlight text to see the web site details.

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 2008-2009

Bank of America --

Origination fee 1%; Guarantor Default fee 1%

Federal Stafford

1% Origination Fee
Effective November 1, 2008, Bank of America will cease offering borrower benefits on FFEL loans. This means that Bank of America€™s current offer of a 0.25% interest rate reduction, effective when a borrower with a Bank of America checking or savings account enters repayment, will be eliminated.

--Ed America

Origination fee 1%; Guarantor Default fee 1%

Federal Stafford

1% Origination Fees
1% Default Fee
0.25% interest rate reduction for ACH payments
Federal Plus

1% Default Fee
0.60% Interest rate reduction for ACH payments
* Plus borrowers are also charged a 3% origination fee as mandated by the Federal Government.

*Borrowers may regain benefits if lost. If the borrower loses repayment of benefits due to their cancellation of auto-debit participation agreement, the repayment benefit will be lost from that date forward with no retroactive penalty to the borrower. The borrower may re-enroll in auto-debit at any time; and the auto-debit interest rate reduction will be reinstated.

-- PNC Bank

Origination fee 1%; Guarantor Default fee 1%

ACH benefits are as follows:

July 1, 2008. PNC will change the ACH interest rate reduction benefit on Stafford loans from .50% to .25% for Federal Stafford loans with auto-debit from ANY bank account.
July 1, 2008. The Plus Loan Benefits will not change and remains at .70% for ACH for Federal Plus loans with auto-debit from ANY bank account.

- - Sun Trust

Origination fee 1%; Guarantor Default fee 1%

Stafford loans:
For Stafford loans, Sun Trust offers the following benefits:

1% federal default fee
0.25% interest rate reduction for payments made by auto-debit
Parent Plus Loans:

0.25% interest rate reduction for payments made by auto-debit
Parents can apply for a forbearance to delay payments while student is enrolled in school at least half-time

Please note that rates and conditions are changing and you must check with the lender for exact details that apply.

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Page Content: Elford, GT Last Updated 04/06/2009
Go to the federal financial aid web site to complete your FAFSA online. File the Free Application for  Federal Student  Aid and name MC to receive a copy of the results. (Title IV Code 006911) Get the directions on how to complete your MC financial aid file by downloading required forms from the secure web site MYMC. Register, attend and pass your classes. Courses must be taken for credit and must lead to a degree or an eligible certificate.