State Reassures New Yorkers There’s Money for College Loans

ALBANY, NY (04/30/2008)(readMedia)-- Students and families gearing up for college in New York State this fall should have no problem finding student loan money, the president of the state agency that helps people finance tuition said today.

“While these are uncertain times for student loans, we want to assure New Yorkers the Federal Family Education Loan (FFEL) program remains fundamentally strong. Every student borrower has been able to obtain a loan in New York,” said James C. Ross, president of the New York State Higher Education Services Corp. (HESC).

Ross made his comments following a HESC board of trustees meeting in Albany. HESC, a state agency, guarantees student loans.

Meanwhile, Congress and federal officials are working on a plan to provide new liquidity for lenders participating in the FFEL program, which Ross said “could be implemented in the next few weeks. Federal changes could help stabilize the market and help more lenders stay in the program and allow others to return” to making student loans, Ross added.

“While recent news stories about student loans may have worried some students and families, New Yorkers should remember that there are many lenders who are willing and able to help families pay for college,” said Richard A. Guarasci, chairman of the HESC board and president of Wagner College on Staten Island.

“About 80 originating lenders are making student loans here in New York, so everyone will have plenty of choices to pay college expenses,” he added.

“For more than three decades, HESC has helped millions of New Yorkers achieve their dreams of attending college and today the agency is also working closely with banks and schools to make sure students are not confused by the process,” said Angela Van Dekker, assistant vice president of student financial services at Fordham University in the Bronx, and a member of the HESC board of trustees.

“HESC will continue to guarantee those loans as they have done for decades,” Van Dekker said.

HESC is the nation’s largest in-state student loan guaranty agency and provides more grant and scholarship money to college students than any other state agency in the nation.

HESC guaranteed more than $4.5 billion in new and consolidated student loans in state fiscal year 2006-07

FOR MORE INFORMATION: Contact Ronald S. Kermani, HESC’s senior vice president for communications, at (518) 473-1264. His home phone is (518) 456-5160 and beeper is (518) 422-3906. Kermani’s e-mail is rkermani@hesc.org.

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