Nation's leading guarantor posts $1-billion increase in loan volume

USA Funds Supports $10 Billion in Financing for College

INDIANAPOLIS—USA Funds^®, the nation's leading student-loan guarantor, reports that its guarantee supported more than $10 billion in federal education loans during the fiscal year ended Sept. 30, 2001, to help Americans pay their college expenses. The figure represents an increase of more than $1 billion over the $9 billion in education loans that USA Funds guaranteed during the previous fiscal year.

"USA Funds serves as a critical link between America's postsecondary institutions and the nation's education lenders to supply vital college funding for students and their parents," said Carl C. Dalstrom, USA Funds' president and chief executive officer. "USA Funds continues to strengthen its relations with schools and lenders by offering a convenient single point of service for education loans, advanced loan-delivery processes and comprehensive default-prevention assistance."

Included in the $10 billion in total education-loan volume for fiscal 2001, USA Funds guaranteed nearly $6.5 billion in Federal Stafford loans for students and more than $900 million in Federal PLUS loans for parents to help families pay tuition and other higher-education expenses. In addition, USA Funds guaranteed nearly $2.7 billion in Federal Consolidation loans for student- and parent-loan borrowers who required special assistance with the repayment of their education loans.

As a student-loan guarantor, USA Funds plays a critical role in the Federal Family Education Loan Program (FFELP), the largest federal source of student financial aid. By connecting students, parents and postsecondary institutions to a nationwide network of private lenders, USA Funds promotes financial access to higher education.

Looking forward to 2002, Dalstrom reported, "We will continue to strengthen our services as a student-loan guarantor. We also will expand initiatives, such as our national scholarship program, and explore new opportunities to help Americans pursue higher learning."