Changing Student Loan Practices Due to Market Turmoil

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Some of you may remember my post about Sallie Mae No Longer Consolidating Student Loans.

[The following was provided by Mark Kantrowitz and expanded by NASFAA.]

Updated List Of Lenders Changing Loan Practices

In the wake of the subprime mortgage market turmoil and lender subsidy
cuts by Congress, student loan providers are modifying their business
practices to adapt to a changing market. This following is a list of
lenders who have changed their practices due to the recent changes.
This list is a work in progress and NASFAA will continue to update it
as we receive and verify information. If you have heard of lenders
changing their practices and you don’t see them on this list or see
any inaccurate information on this list, please notify NASFAA by
emailing web@nasfaa.org. We will keep the list as up to date and
accurate as possible.

LAST UPDATED SEPT. 17, 2008

Loan Program Suspensions

Lenders suspending FFELP Loans include: 111 total

* A+ Funds/Medfunds (Graduate Level Loans)
* Abilene Teachers Federal Credit Union
* Academic Funding Group/Provincial Bank (#78 origination)
* Academic Financial Services
* Academic Loan Group
* Acapita
* Academic Finance Corporation
* Acccess Credit Union
* Affinity Direct/Educational Direct (#45 origination)
* ALL Student Loan (FFELP Loans outside California) (#43 origination)
* Amarillo National Bank
* American Education Services (AES)/PHEAA (#19 origination)
* Ardent Financial
* Bank of Lake Mills (#28 origination)
* Bank of Texas
* Bankers Trust
* Brazos Higher Education Service Corp. (Brazos Student Lending,
Academic Finance Corp., Educational Funding Services, Inc., Acapita)
* Boeing Credit Union
* Cadence Bank
* Campus Door
* Carnegie Student Loans
* Capitol Federal Savings, Kansas
* Capital One/Axiom
* City Bank Texas
* College Board (#25 origination)
* College Loan Corporation (#7 origination)
* College Solutions Network (#40 origniation)
* Collegiate Solutions
* Comerica Bank (#39 origination)
* Commercial Bank of Texas
* CoreFirst Bank
* Cornhusker Bank
* COSTEP
* Credit Union of Texas
* Cy-Fair Federal Credit Union
* Deutsche Bank Trust Company
* Education Credit Union
* Educational Funding Services
* F&M Bank and Trust Company
* Falcon International Bank
* Federal Student Loan Solutions
* FinanSure
* First Financial Bank, Eastland
* First Horizon Bank
* First Niagara Bank
* First Service Credit Union
* First United Bank
* FirstBank Southwest
* FirstMark Credit Union
* Freestone Credit Union
* Frost National Bank (#66 origination)
* GMAC Bank
* Goal Financial (#64 origination)
* Happy State Bank
* HCSB (state banking association)
* HSBC (#43 origination)
* Heights State Bank
* Hereford State Bank
* Independence Federal Savings Bank
* Independent Bankers Bank
* International Bank of Commerce (temporary suspension)
* K2 Student Loan Solutions
* Kansas State Bank
* Kentucky Higher Education Student Loan Corp./The Student Loan
People (suspended loans to first-time borrowers)
* Kleberg Bank
* Legacy Texas Bank
* Loanster Financial Group LLC
* M&T Bank (#40 orgination)
* Michigan Higher Education Student Loan Authority (MHESLA)
(temporary suspension)
* Mills County State Bank
* My Rich Uncle
* National Bank of Andrews
* National Education
* National Student Loan Group
* Northwest Savings Bank (suspending FFELP loans to first-time borrowers)
* Neches Federal Credit Union
* NextStudent (#59 origination)
* NorthStar Education Finance Inc. (# 11 origination)
* Northwest Savings Bank (for first-time borrowers)
* Plains Capital Bank (temporary suspension)
* Red River Federal Credit Union
* SAF-MT (Montana)
* San Antonio Federal Credit Union
* Security Bank of Kansas City
* Sovereign Bank
* Spokane Teachers Credit Union
* StarTrust Federal Credit Union
* Student Capital Corp.
* Student Loan Xpress
* SunTrust Education Loans – ONLY SUSPENDED IN TEXAS – (13 orginations)
* Tarrant County Credit Union
* TCF Bank (#44 origination)
* TD Banknorth
* Texas Bay Area Credit Union
* Texas Dow Employees Credit Union
* Texas Independent Bank
* Texas Rural Communities
* THE National Bank
* TierOne Bank
* Total Higher Education (T.H.E. Loan Program) (Temporary Suspension)
* Town and Country Bank
* Twin Cities Federal Bank
* University of Miami
* Urban Ed Express
* U.S. Education Loan Trust IV (#100 originations)
* Washington Mutual
* Weatherford National Bank
* West Des Moines State Bank
* Wichita Falls Teachers Federal Credit Union
* Widener University
* Zions Bank (#61 orignation)

Lenders exiting or suspending private student loans include: 33 total

* A+ Funds/Medfunds (Graduate Level Loans)
* Academic Funding Group/Provincial Bank
* Access Group
* Bank of America
* Bremer Bank
* Comerica Bank
* Commerce Bank
* Commercial Bank of Texas
* Campus Door
* College Loan Corp.
* Education Finance Partners
* FinanSure
* GATE Student Loan Program
* GMAC Bank
* HELP Alternative Loans
* IEFC
* Iowa Student Loan
* Kansas State Bank
* Loan to Learn
* MOHELA (Missouri)
* Michigan Higher Education Student Loan Authority (MHESLA)
* My Rich Uncle
* New Hampshire Higher Education Loan Corporation (NHHELCO)
* NELNET
* NextStudent
* Sallie Mae (Recourse Loans Only)
* ScholarPoint
* Student Loan Xpress
* TD Banknorth
* THE National Bank
* Urban Ed Express
* Wachovia (Undergraduate, Continuing Education)
* Washington Mutual
* West Des Moines State Bank
* Zions Bank

Lenders suspending or limiting only FFELP consolidation loans include: 31 total

* Access Group (#21 consolidations)
* Alaska Commission on Postsecondary Education (#97 consolidations)
* Bank of America (# 42 consolidations)
* Brazos (#19 consolidations)
* Citibank’s Student Loan Corporation (SLC) (#7 consolidations)
* CollegeInvest (#34 consolidations)
* Commerce Bank
* Commercial Bank of Texas
* GCO-ELF (#24 consolidations)
* Graduate Leverage (#11 consolidations)
* Iowa Student Loan (#26 consolidations)
* ISM Educ. Loans (Indiana) (#22 consolidations)
* JP Morgan Chase (#5 consolidations)
* Kentucky Higher Education Student Loan Corporation (# 43 consolidations)
* Loanster Financial Group LLC
* MHHELCO New Hampshire Higher Education Loan Corp (#63 consolidations)
* Montana Higher Education Student Assistance Corporation (MHESAC)
(#32 consolidations)
* MOHELA (Missouri) (#15 consolidations)
* M&I Bank
* NELNET (#2 consolidations)
* NextStudent (#3 consolidations)
* NorthStar/T.H.E. (#21 consolidations)
* NTHEA
* Regions Bank
* Sallie Mae (limiting FFELP consolidation activity)
* ScholarPoint (#53 consolidations)
* South Carolina Student Loan Coporation (#37 consolidations)
* U.S. Education Loan Trust IV (#35 fy consolidations)
* UHEAA
* Wachovia Education Finance (#16 consolidations)
* Wells Fargo (#8 consolidations)

Loan Program Expansions

Lenders expanding their loan programs: 11 total

Note: These lenders have notified NASFAA that they are looking to
expand their FFEL student loan portfolios, but some are expanding
selectively and refusing to lend to students at certain institutions.

* Citi Bank
* Discover Student Loans
* JP Morgan Chase
* National City
* OneSimpleLoan
* PNC
* Sallie Mae
* Student Funding Group, LLC (StuFund)
* Student Loan Network
* Texas Dow Employees Credit Union (TDECU)
* U.S. Bank

Please check with your lenders to make sure that your semesters through the end of Spring will be fully funded.  If possible, discuss any changes specifically with your financial aid administrator.