[Lender] 09-10 PLUS

[Mc Conahay, Pamela K.]

Have any lenders made any plans to prevent PLUS borrowers from applying for 09-10 loans until the winner of the auction has been determined?

At the Las Vegas FSA conference, an aid officer asked whether a FFELP school could certify an 09-10 PLUS that passed credit through a non-auction lender and the answer was no.  So, if a parent applied for an 09-10 PLUS in January 09 through ABC bank and ABC didn't win the auction contract, the school is not supposed to certify that loan, the parent has to reapply through the auction lender.

We're trying to warn parents not to apply too early so they don't end up having to reapply and have another credit hit.

Pam McConahay
Associate Director, University of Oklahoma Financial Aid Services
1000 Asp Ave, Room 216, Norman, OK 73019-4078
(405) 325-4617  Fax (405) 325-3657
pmcconahay at ou.edu

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