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<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>Just a point of clarification so that we
don’t mix apples and oranges here. One issue is what the lenders are
doing about the origination fee, while the other issue is what the guarantors
are doing about the guarantee fee. <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>Many if not most lenders have indicated
their decision to “pay the 3% origination fee for the student” as
one press release said. Obviously, this allows the student to receive more of
their loan proceeds. Lenders have decided to do so at no small cost to them in
order to stay competitive with other lenders. It’s not their favorite course
of action, but should they not do so, they risk loosing business to
competitors. And that is a risk they do not want to take. How long they can
and/or will continue this action is yet to be seen. But the fact is for 2006-07,
the student’s choice of a lender can make a difference in how much their
loan check will be.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>At the same time, it appears that the
schools choice of a guarantor can make a difference in how much a student’s
loan check will be. Mary has correctly pointed out that guarantors are required
by law to collect the 1% guarantee fees. That point is not in question. The original
question was asking for discussion about what schools will do if some guarantors
opt to reimburse the student for the 1% guarantee fee while other guarantors
choose not to so. Maybe the school’s decision is on this issue is simply
a matter of location. By that I mean if you live in a state where the guarantor
reimburses the student the 1% fee then your students fortunately get that
benefit. On the other hand, if you live in a state where the guarantor does not
reimburse the student, then your students are out of luck. <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>We all want to do what will be in the best
interest of our students. Certainly money issues and service issues are both
part of the mix as we think through our options. Thanks to all for any comments
regarding the options (if more than one option exits) which are being
considered by different schools.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>Larry<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
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<p class=MsoNormal><b><font size=2 face=Tahoma><span style='font-size:10.0pt;
font-family:Tahoma;font-weight:bold'>From:</span></font></b><font size=2
face=Tahoma><span style='font-size:10.0pt;font-family:Tahoma'>
oasfaa-bounces@lists.onenet.net [mailto:oasfaa-bounces@lists.onenet.net] <b><span
style='font-weight:bold'>On Behalf Of </span></b>Sherry Foster<br>
<b><span style='font-weight:bold'>Sent:</span></b> Wednesday, March 01, 2006
2:55 PM<br>
<b><span style='font-weight:bold'>To:</span></b> Nancy Moats; oasfaa@onenet.net<br>
<b><span style='font-weight:bold'>Subject:</span></b> RE: [Oasfaa] Guarantor
Question</span></font><o:p></o:p></p>
</div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>I just visited with Kimberly today from
BOK and she says that they are picking up the Guarantee fee. She just
smiled when I mentioned future years. I don’t think anyone knows
for sure.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>Sherry Foster<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
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<p class=MsoNormal><b><font size=2 face=Tahoma><span style='font-size:10.0pt;
font-family:Tahoma;font-weight:bold'>From:</span></font></b><font size=2
face=Tahoma><span style='font-size:10.0pt;font-family:Tahoma'> <st1:PersonName
w:st="on">oasfaa-bounces@lists.one<st1:PersonName w:st="on">net</st1:PersonName>.<st1:PersonName
w:st="on">net</st1:PersonName></st1:PersonName> [mailto:<st1:PersonName w:st="on">oasfaa-bounces@lists.one<st1:PersonName
w:st="on">net</st1:PersonName>.<st1:PersonName w:st="on">net</st1:PersonName></st1:PersonName>]
<b><span style='font-weight:bold'>On Behalf Of </span></b>Nancy Moats<br>
<b><span style='font-weight:bold'>Sent:</span></b> Wednesday, March 01, 2006
2:48 PM<br>
<b><span style='font-weight:bold'>To:</span></b> oasfaa@one<st1:PersonName
w:st="on">net</st1:PersonName>.<st1:PersonName w:st="on">net</st1:PersonName><br>
<b><span style='font-weight:bold'>Subject:</span></b> RE: [Oasfaa] Guarantor
Question</span></font><o:p></o:p></p>
</div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>To add to both of your comments, has
anyone seen anything in writing from a guarantor who is willing to subsidize
the 1% fee, and if so, is there any commitment to subsidize it beyond this
first year?</span></font><o:p></o:p></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'> </span></font><o:p></o:p></p>
<p class=MsoNormal><st1:place w:st="on"><st1:City w:st="on"><font size=2
color=navy face=Arial><span style='font-size:10.0pt;font-family:Arial;
color:navy'>Nancy</span></font></st1:City></st1:place><font size=2
color=navy face=Arial><span style='font-size:10.0pt;font-family:Arial;
color:navy'> Moats</span></font><o:p></o:p></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'> </span></font><o:p></o:p></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'> </span></font><o:p></o:p></p>
<p class=MsoNormal style='margin-left:.5in'><font size=2 face=Tahoma><span
style='font-size:10.0pt;font-family:Tahoma'>-----Original Message-----<br>
<b><span style='font-weight:bold'>From:</span></b> <st1:PersonName w:st="on">oasfaa-bounces@lists.one<st1:PersonName
w:st="on">net</st1:PersonName>.<st1:PersonName w:st="on">net</st1:PersonName></st1:PersonName>
[mailto:<st1:PersonName w:st="on">oasfaa-bounces@lists.one<st1:PersonName
w:st="on">net</st1:PersonName>.<st1:PersonName w:st="on">net</st1:PersonName></st1:PersonName>]
<b><span style='font-weight:bold'>On Behalf Of </span></b><st1:PersonName
w:st="on">Hollingsworth, Larry</st1:PersonName><br>
<b><span style='font-weight:bold'>Sent:</span></b> Wednesday, March 01, 2006
2:03 PM<br>
<b><span style='font-weight:bold'>To:</span></b> oasfaa@one<st1:PersonName
w:st="on">net</st1:PersonName>.<st1:PersonName w:st="on">net</st1:PersonName><br>
<b><span style='font-weight:bold'>Subject:</span></b> RE: [Oasfaa] Guarantor
Question</span></font><o:p></o:p></p>
<p class=MsoNormal style='margin-left:.5in'><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'> <o:p></o:p></span></font></p>
<p class=MsoNormal style='margin-left:.5in'><font size=2 color=blue face=Arial><span
style='font-size:10.0pt;font-family:Arial;color:blue'>Great question Jonna.
I'll be the first to jump in. Hopefully, others will join us. You're not alone
struggling with this delimma. Many of us are "in a pickle" on this
one though. </span></font><o:p></o:p></p>
<p class=MsoNormal style='margin-left:.5in'><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'> <o:p></o:p></span></font></p>
<p class=MsoNormal style='margin-left:.5in'><font size=2 color=blue face=Arial><span
style='font-size:10.0pt;font-family:Arial;color:blue'>Who among our students,
if given the opportunity to pay zero fees or pay a 1% fee would opt for the 1%?
Not many I'd bet. At the same time who among our financial aid offices wants to
sit down with a student/parent and defend processing a loan with 1% fees when
it could have been processed with no fees? I don't look forward to that type of
a conversation. Therefore, I'm trying to figure our a simple way of
communicating the choices to our students and let them make the decision for
themselves.</span></font><o:p></o:p></p>
<p class=MsoNormal style='margin-left:.5in'><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'> <o:p></o:p></span></font></p>
<p class=MsoNormal style='margin-left:.5in'><font size=2 color=blue face=Arial><span
style='font-size:10.0pt;font-family:Arial;color:blue'>When lenders are biting
the bullet and waiving fees in order to be competitive, I'd like to see OGSLP
do the same thing. Unfortunately, I don't believe state schools have to same
flexibility that privates do in pursuing a better alternative for their
students. Let's face it, polictics are part of the environment in which we
live. So if anyone has any creative solutions in mind, please share them
with the rest of us. </span></font><o:p></o:p></p>
<p class=MsoNormal style='margin-left:.5in'><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'> <o:p></o:p></span></font></p>
<p class=MsoNormal style='margin-left:.5in'><font size=2 color=blue face=Arial><span
style='font-size:10.0pt;font-family:Arial;color:blue'>These observations
are not intended to represent anyone but me. </span></font><o:p></o:p></p>
<p class=MsoNormal style='margin-left:.5in'><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'> <o:p></o:p></span></font></p>
<p class=MsoNormal style='margin-left:.5in'><font size=2 color=blue face=Arial><span
style='font-size:10.0pt;font-family:Arial;color:blue'>Larry</span></font><o:p></o:p></p>
<p class=MsoNormal style='margin-left:.5in'><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'> <o:p></o:p></span></font></p>
<div style='margin-left:.5in'>
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face="Times New Roman"><span style='font-size:12.0pt'>
<hr size=2 width="100%" align=center>
</span></font></div>
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<p class=MsoNormal style='mso-margin-top-alt:0in;margin-right:0in;margin-bottom:
12.0pt;margin-left:5.0in'><b><font size=2 face=Tahoma><span style='font-size:
10.0pt;font-family:Tahoma;font-weight:bold'>From:</span></font></b><font
size=2 face=Tahoma><span style='font-size:10.0pt;font-family:Tahoma'> <st1:PersonName
w:st="on">oasfaa-bounces@lists.one<st1:PersonName w:st="on">net</st1:PersonName>.<st1:PersonName
w:st="on">net</st1:PersonName></st1:PersonName> [mailto:<st1:PersonName w:st="on">oasfaa-bounces@lists.one<st1:PersonName
w:st="on">net</st1:PersonName>.<st1:PersonName w:st="on">net</st1:PersonName></st1:PersonName>]
<b><span style='font-weight:bold'>On Behalf Of </span></b>Jonna L. Raney<br>
<b><span style='font-weight:bold'>Sent:</span></b> Wednesday, March 01, 2006
12:45 PM<br>
<b><span style='font-weight:bold'>To:</span></b> oasfaa@one<st1:PersonName
w:st="on">net</st1:PersonName>.<st1:PersonName w:st="on">net</st1:PersonName><br>
<b><span style='font-weight:bold'>Subject:</span></b> [Oasfaa] Guarantor
Question</span></font><o:p></o:p></p>
<p class=MsoNormal style='margin-left:.5in'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'>I’m interested to know what
schools are doing for 06/07 about the guarantor for their loans. I’m torn
because I want to do business in OK, but if other guarantors are paying the 1%
guarantee fee, I have to also keep in mind what is best for our students. I
feel like the service from the 1% guarantor and the no fee guarantor are both
very good, so that’s not a big factor in the decision for me. </span></font><o:p></o:p></p>
<p class=MsoNormal style='margin-left:.5in'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'> </span></font><o:p></o:p></p>
<p class=MsoNormal style='margin-left:.5in'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'> </span></font><o:p></o:p></p>
<p class=MsoNormal style='margin-left:.5in'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'>I don’t want to step on any
toes, but I need to make a decision about this topic fairly soon.
I’d like to hear from both State and Private schools if possible.</span></font><o:p></o:p></p>
<p class=MsoNormal style='margin-left:.5in'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'> </span></font><o:p></o:p></p>
<p class=MsoNormal style='margin-left:.5in'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'>Thanks for any feedback. </span></font><o:p></o:p></p>
<p class=MsoNormal style='margin-left:.5in'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'> </span></font><o:p></o:p></p>
<p class=MsoNormal style='margin-left:.5in'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'>Jonna Raney</span></font><o:p></o:p></p>
<p class=MsoNormal style='margin-left:.5in'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'>St. Gregory’s University</span></font><o:p></o:p></p>
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