USA Funds marks 25th anniversary as Hawaii's guarantor of student loans
Expanded scholarships, one-time loan forgiveness for Hawaii students
INDIANAPOLIS—In celebration of its 25th anniversary as Hawaii's designated student-loan guarantor, USA Funds® and its affiliate, SMS Hawaii®, today announced programs to benefit college students in Hawaii and former students who are repaying their student loans.
"As the first state in which USA Funds was designated to be the guarantor of federal education loans, Hawaii has played an important role in USA Funds' history," said William R. Neale, chairman of USA Funds' board of trustees. "In commemoration of this 25th anniversary, we're pleased to announce two programs that will strengthen our partnership with Hawaii higher education."
For 2004, USA Funds will create the Hawaii Silver Anniversary Scholarship Program and double to $300,000 its funding for scholarships to residents of Hawaii. The scholarships will be directed to students from households with incomes of $50,000 or less. The program will provide $1,500 scholarships to full-time undergraduate and graduate students, and $750 scholarships to part-time undergraduates. As long as students remain eligible, the scholarships may be renewed until the students finish their degrees or accumulate a total of $6,000 in awards under the program.
USA Funds will distribute additional information about the Hawaii Silver Anniversary Scholarship Program to college financial-aid offices and high-school counselors this fall.
In addition to the expanded scholarship program, SMS Hawaii will offer a one-time loan-forgiveness program to certain student-loan borrowers who are experiencing economic hardships. SMS Hawaii borrowers who have applied for an economic-hardship deferment will be eligible for forgiveness of up to $2,500 of their outstanding SMS Hawaii loan balances.
"These borrowers are receiving public-assistance payments, earning less than the federal minimum wage or the poverty level, or are from low-income households and have student-loan payments that are a significant percentage of their monthly incomes," said Carl C. Dalstrom, president, CEO and chairman of SMS Hawaii. "We recognize that current difficult economic times have challenged some borrowers in the repayment of their education debt, and we're helping those with the greatest need."
An estimated 55 SMS Hawaii borrowers are projected to save approximately $120,000 under the loan-forgiveness program. Eligible borrowers will be notified by SMS Hawaii.