After 30 Years of FFELP, College Assist Transitions to New Role

As schools across the nation prepare for a new phase of federal higher education loan programs, College Assist’s role is also shifting. While our staff will no longer provide origination and disbursement assistance, our emphasis will remain on default prevention. We will continue to work with defaulted borrowers to collect payments and to rehabilitate their defaulted loans. 

“College Assist has been a critical part in helping more than 1.2 million students achieve their educational goals in its 30-plus years of service to Colorado students and schools,” said Director Deb DeMuth. “We’re very proud of the fact that we’ve guaranteed more than $21 billion in student loans and helped thousands of borrowers successfully manage their college-related debt."

As the state-designated guarantor of student loans for Colorado, College Assist —formerly known as the Colorado Student Loan Program—administered the Federal Family Education Loan Program, providing Federal Stafford, PLUS, Grad PLUS, and consolidation loans to students and parents through private lenders.

Through tools such as StudentLoanOnline, CollegeInColorado, the SLOPE Calculator™, our Solutions Seminars (free training for financial aid professionals),  Policy Conferences and scholarships, College Assist has consistently created new products and services to meet the changing needs of our financial aid partners.

While we’ll no longer fill the same niche within the student loan program, College Assist staff will continue to be available to students, schools, and lenders as a resource on many topics. Here’s a look at how you and your students can call on us for our expertise:

Redirect Students for Online Counseling after September 30

Mapping-Your-Future’s online entrance and exit counseling will be available through StudentLoanOnline until September 30, 2010. After that, financial aid offices can guide students directly to the Mapping-Your-Future site or to one of the Department of Education’s online entrance and exit counseling sites.

Borrowers in the Direct Loan program can receive counseling at https://www.dl.ed.gov/borrower/CounselingSessions.do.  

The NSLDS Student Access website (www.nslds.ed.gov) also offers an exit counseling tool for borrowers in both the Direct Loan and FFEL programs. The tool provides a single exit counseling session for Direct Loan-only borrowers, for FFEL-only borrowers, and for borrowers who have received a combination of loans from both programs.

On the NSLDS Professional Access website, the Department has enhanced the reports that help track exit counseling completion and student data gathered during the counseling session. Reports now offer new flexibility for schools with multiple locations.

That’s What I Like About You: Perspectives on Partnership

As we wrap up Outlook with this final issue, what better time to share our thoughts on the pleasure we’ve had working with schools and lenders for more than 30 years? We were also honored to receive a few compliments on our work from long-cherished customers, so we offer those here as well. For a visual look at the deep connection we’ve had with partners in our shared mission of helping families realize their educational goals, see our photo collage.

“For years, the staff at College Assist were an incredible resource and an invaluable partner for colleges and students in securing FFELP loans. Thousands of students are better off today because of the fine work and diligent efforts of one of Colorado’s best examples of government working for the people.”

Marty Somero
Director of Financial Aid, University of Northern Colorado

“I've had the pleasure of growing up (notice I said ‘up,’ not ‘old!’) with many of my friends at the schools. We've talked about our kids as they've tortured us, grown up, gone to college, and married. It's sad that I won't have the same level of interaction I have had with those folks, but I'm happy that I've made life-long friends along the way.”

Caron Peterson
Managing Director, Business Development/College Assist

“Colorado Mountain College’s experience with College Assist through the years was always pleasant and professional. Colorado Mountain College went into direct lending the second year of the program—in the mid-‘90s—and experienced a number of challenges. When we decided to return to FFELP, the college was welcomed back with open arms. Most importantly, processes were developed to help our students to receive their loan in a timelier manner. Reconciliation became easy again. When the consortium was up and running, we experienced one of the smoothest run financial aid programs I had ever been involved with. I will always be grateful for the support and friendship of College Assist.”

Gary Lewis
Director of Financial Aid, Colorado Mountain College

“The people I knew and loved in FFELP had the vested interest, the natural affinity, and the moral compass to pursue every available course to better the lives of students, solve school problems, invent new ways, and influence the outcomes of national policy…The best thing of all, perhaps?  All the things we accomplished together are now so natural for financial aid that they are taken for granted. But at one time, they were grand!”

Dan Rodgers
Manager of Compliance, Training & Investigations/College Assist

“My first experience with College Assist (formerly CSLP) was in 1993. I started to work in the Fort Lewis Financial Aid Office in September the week that our fall classes began (no previous FAO experience, of course). CAFAA was in Durango in October of that year.  I had already had many phone calls to College Assist in the month before I actually met some of the players face to face. Judy Ransom made her way to the office and basically trained me on how to translate use of my keyboard (dumb terminal) to communicate with the College Assist system. This started a great relationship with everyone at College Assist that has lasted throughout the years—both personally and professionally. I felt very comfortable in attending training sessions that I knew would be accurate in detail, as well as making a call to almost any staff member to get a problem resolved or get advice on a compliance issue. I have truly appreciated everyone every step of the way…I can truly say that College Assist has been a great teacher and partner throughout the years.”

Sue Ruetschle
Student Loan Coordinator, Fort Lewis College

“How can you sum up years of great memories into a few sentences? Before rules changed, I loved making a difference during ‘fall start up' by helping out at various school financial aid offices. The collaboration with schools and lenders for StudentLoanOnline was an incredible learning experience, and I thank you for that! More than anything, there was always fun to be had. Cheers to my fellow members of the '3 a.m. Club' (and the fountain of life!), to the crazy loan administrator who starting calling me 'loglo' many years ago, and to the friends who made this job so rewarding. It was a pleasure working with you!”

Lori Gloer
Director, Operations/College Assist

New Interest Rates Set for 2010-11

A new set of interest rates went into effect for Federal Direct Subsidized and Unsubsidized Loans originated beginning July 1, 2010. A complete list of all interest rates for Title IV loans is provided at the studentaid.ed.gov website. The newest interest rates are:

Direct subsidized
For undergraduate students, loans first disbursed between July 1, 2010, and June 30, 2011, carry a fixed rate of 4.5 percent. For loans first disbursed between July 1, 2011, and June 30, 2012, the rate will be fixed at 3.4 percent.
The graduate and professional student loan rate remains at its current fixed rate of 6.8 percent.

Direct unsubsidized
The interest rate is fixed at 6.8 percent for all undergraduate and graduate borrowers.

Members of the military
Students who qualify under the Service Members Civil Relief Act may request an interest rate cap of 6 percent on loans taken out before they entered military service. Students should contact their loan servicer to request the rate cap. In addition, the Department does not charge interest on Direct Loans first disbursed on or after October 1, 2008, as long as a borrower is on active military duty, including National Guard duty during a war and other qualifying circumstances. The interest waiver applies for a maximum of 60 months.

Students who currently have a Stafford loan and would like to check their interest rate, servicer information, and other financial aid history can go to the National Student Loan Data System.