College Loan Questions

[Jeri Lynn]

I received a letter from MEFA yesterday (Massachusetts Eductional Financing Authority) basically stating that due to the economy they cannot renew my daughters Federal Education Loan for the 2008-2009.

I am very confused and I'm hoping someone can clarify for me. I did try calling them but ended up even more confused.

I have two daughters, when my first daughter went to college I filled out her FAFSA and she received an unsubsidized federal student loan through Sallie Mae. My second daughter received her fsl from ASA...American Student Assistance.

I am confused, are Sallie Mae and ASA just Federal Lenders that have taken these two loans? Or can I apply for a Sallie Mae loan for both girls for next year?? I have not received anything from Sallie Mae saying my first daughter cannot receive federal aid.
If I go to the MEFA website it states:

Thank you for your interest in a MEFA Loan. MEFA's interest rates, terms, and loan products for the 2008-2009 academic year will be determined in late spring 2008.

MEFA will periodically send you information about borrowing for higher education and we will notify you when interest rates, terms and loan programs are finalized.

I tried to call the college that both girls are hoping to transfer to but all I got was a recording and no way to talk to a human.

I am under the impression that I should probably be researching private student loans for both girls.

I'm so confused!!:confused::confused:

[NotaGeek]

College loans are ridiculously confusing and if you don't choose wisely it can cost you THOUSANDS of dollars in interest. I suggest you go to your bank and talk to a lending professional. Rules and laws vary by state, and getting the info on INTERCOT, although we all have opinions, might not be the best place to make sure you get all your ducks in a row.

Good luck.

[Aggie97]

I am sorry you're having to go through this!

You are correct that Sallie Mae is just one of the many lenders who can offer federal student loans. I believe that you select from a list of lenders when you complete the FAFSA, and Sallie Mae should be one of the options.

I am guessing that MEFA is the lender you had selected? It sounds like the issue is with MEFA not being able to back student loans due to the economy -- so your daughter should be able to get federal assistance from a different lender.

I believe you should be able to select Sallie Mae for both of your daughter's future federal student loans. If you can't get through to the university's financial aid office, perhaps you could try contacting the admissions department to see if they can get you through to someone? Or, maybe call Sallie Mae directly, explain the situation, and see what they can do to help? My husband's student loan is through them, and they have always been easy for us to work with.

Good luck! :)

[Jeri Lynn]

Thanks for the replies.

I guess I was pretty confused. I did not/do know know if MEFA is like the head honcho of financial aid and they send the different loans out to different places, like Sallie Mae or ASA, kind of like a bank that sells mortgages to other lenders....

The letter states all Federal loans...so I will have to contact Sallie Mae and see if that means they can't offer federal loans either...

My sister had two boys go through college and she said the financial aid was pretty confusing to her...

I will make some calls on Monday to see if anyone can clarify things for me.