USA Funds Offers Lenders Guidance for Participating in Federal-Default-Fee Buydown

USA Funds^® has announced that, effective Feb. 1, 2008, it will subsidize from its nonfederal resources one-half of the 1-percent federal default fee for Stafford- and Grad PLUS-loan borrowers at selected schools, when the originating lender buys down the other half of the fee. Representatives of education lenders can review the steps they need to take to participate in USA Funds’ federal-default-fee buydown. Lenders must act by Jan. 3 for their fee buydown to take effect Feb. 1.