Lenders to Choose

Lenders for 2008-2009

Bank of America --
Origination fee 1%; Guarantor Default fee 1%

Federal Stafford

• 1% Origination Fee
• 0.25% Interest rate reduction for Bank of America Checking or Savings account customers
• The rate reduction applies for the life of the loan.  Once the borrower earns the benefit, it is not removed for any reason.
• Bank of America verifies that a borrower has a checking or savings account.  The borrower does not need to take any extra steps or provide documentation.
• Auto debit is not required.

Federal Plus

• 0.25% Interest rate reduction for Bank of America Checking or Savings account customers
• The rate reduction applies for the life of the loan.  Once the borrower earns the benefit, it is not removed for any reason.
• Bank of America verifies that a borrower has a checking or savings account.  The borrower does not need to take any extra steps or provide documentation.
• Auto debit is not required.

If the first disbursement on your loan is before 06/30/09. a 0.25% interest rate reduction applies if you have a Bank of America checking or savings account open for at least 60 days between your loan disbursement and your first scheduled payment. Your rate will be reduced shortly after you make your first scheduled payment on time. To see our checking and savings accounts, visit https://www.bankofamerica.com/index.jsp and click “Checking” or “Savings & CDs.”

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