This is what they sent out, it's not the school's fault. Regardless, am I understanding this correctly? Ordinarily I just fill out my FAFSA, then I fill in a little sheet at the registrars office where I tell them how much I want for federal subsidized and unsubsidized (I ask the max, obviously). Then I fill out one that just says "Grad PLUS" on it and how much I want from that one. I never fill out one that says Sallie Mae, or student loan xpress specifically on it - so I wouldn't be affected by that, but the second sentence in this email is what I'm confused about.

Second Notice!!
To Financial Aid Borrowers;
Student Loan Xpress has ceased student lending operations effective April 3, 2008. Any Federal Stafford and Grad PLUS loans that have not funded on or before April 3, 2008 have cancelled.
As a result, Student Loan Xpress borrowers will need to select a new lender and complete a new Master Promissory Note to receive their loans. You may choose one of the AUC preferred lenders or select any FFEL lender of your choice. A complete mailing address and lender code must be provide on the promissory note for any lender not on the list following:

SallieMae - Lender Code 802218
NellieMae- Lender Code 529076
Citibank - Lender Code 826878
The Master Promissory Notes for the Stafford and the Grad PLUS can be downloaded from the links provided.
http://www.salliemae.com/NR/rdonlyre...N_Inst_Add.PDF (Stafford)
http://www.salliemae.com/salliemaene...sMPN&type=borr (Grad Plus)We apologize for any inconvenience but understand this situation was not in our control. American University of the Caribbean
Financial Aid

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"Not if I don't see you first, sonny..."

yeah student loan Xpress is done with on all new student loans, federal and private - nothing to do with AUC.....

A glimpse of good news on the lending front is that Congress is taking immediate steps to ensure the money is there for student lenders to sponsor FEDERAL student loans. Looks like the private loan option is going to be less and less viable though and this does not bode well for schools that lack federal funding. Lets hope that there isn't a streamlining of federally funded programs as well - that would be scary.
Congress moves to calm student loan turmoil | U.S. | Reuters

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AUC May08
Undergrad: UCSD

I think what you're confused about is the fact that Sallie Mae or Student Loan Xpress, for example, are the sponsors for the GradPlus loans. You had to have originally declared a specific lender for your grad plus AND stafford loans. If you were using Xpress than those federal loans will not be disbursed and all you have to do is change the lender code to Sallie Mae. If you were using Sallie Mae than you don't have to do anything.
Now what congress is doing is ensuring that Sallie Mae and other lenders have the financial backing from the government to serve the GradPlus and Stafford loans. in the article posted above the chairman of Sallie Mae warns that in mid 2008 at the height of student lending time, this could all be in worse shape and be a major "train wreck" without major government intervention.

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AUC May08
Undergrad: UCSD

I hope this works cause I depend on the loans to get me thru as much as the next student. Me like most people don't have mommy or daddy to run to just to pay for a class. What infuriates me the most is that some "students" take out the loans just to get a car and don't repay them and the just makes it harder for people that really need the money to get the money. Some institutions are red flagged because of their attrition rates among students. The lenders figure why am i going to lend money if they are not going to graduate anyway and that makes it harder for students as well especially ones that goto private schools and private HBCU's where the attrition rate is higher than most public and state schools.

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A.S. Math - Nassau Community College [x]
B.A. Math - Johnson C. Smith University [x]
B.S. General Science - Johnson C. SMith [x]

KICK MY FEET UP AND GET READY FOR GREENVILLE, NC!!!!!!!!!

East Carolina [A]

haha... he who does not repay loan does not get far with car

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AUC May08
Undergrad: UCSD

Interesting interpretation. Probably has nothing to do with why the lenders are going out of business, but interesting nonetheless.

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I'm an AUC student...that's all you need to know

ohhh, I think I get it now, but I still don't think that I ever specified a lender. My first semester I took out a private loan through Sallie Mae, this was before GradPLUS was available, and the interest was insane like 14 or 15. So when GradPLUS became available at a fixed 8.5% it was like a miracle. So there are several lenders that offer a GradPLUS program then...ok. Why doesn't the government just offer the loans itself, instead of thru several companies? And what is different about a GradPLUS loan from an unsusidized Stafford?

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"Not if I don't see you first, sonny..."

The school would automatically default to a certain lender for Stafford loans. When I first started it was Great Lakes Higher Ed Loan Corp/Bank of Lake Mills and then for some reason it was switched to Student Loan Xpress like two or three semesters ago. AFAIK, you had no choice (???) in your Stafford lender, the MPN was already filled out for a certain lender.

Since SLX folded, you need to specify a different lender. Getting a new lender requires you only to fill out a new MPN. Since the Stafford loans are by definition guaranteed by the federal government (if you default on the lender, the government pays the loan and then goes after you for the money), lenders are not particularly concerned that they will not get their money back. This is not the case with credit-based private loans where the lenders might get anxious that you will default and then declare bankruptcy and they will be out your money.

THIS DOES NOT MEAN THAT STAFFORD LOANS ARE GONE FOR AUC. It's a massive inconvenience that the primary Stafford lender used by AUC is gone and now everyone that used SLX now has to fill out new paperwork. If you do this quickly, (like by today, for the May semester) you should have no interruption in funding.