Spellings Reaches Out To Schools, Legislators Send Mixed Messages

Abstract: Secretary of Education Margaret Spellings sent letters to college and university presidents last week to reassure them that federal financial aid - including loans through the FFEL and Direct Loan programs - will continue to be available to students and families. Spellings said that while some lenders have chosen to "reevaluate" their participation in the FFEL program, she expects other lenders to actively compete for their lost loan volume. The Department will begin contacting financial aid administrators in the coming days to inquire about any lenders that plan to reduce or discontinue making loans.

The original article was published 03/05/08 in NASFAA’s Today’s News.