USA Funds Updates Consumer Information to Reflect Loan-Program Changes

USA Funds^® has updated key consumer publications and online information to help students and parents understand the changes in education-loan terms enacted as part of the Higher Education Reconciliation Act of 2005.

Consumer publications
USA Funds’ comprehensive array of publications that help parents and students plan and pay for college has been updated to reflect the changes in the law. English-language versions are available for ordering now. Spanish-language versions will be available by mid-July. The publications include the following items:

Borrowing for College, USA Funds’ guide to Federal Stafford and PLUS loans, has been updated to reflect the new fixed interest rates on those loans, PLUS-loan eligibility for graduate and professional students, deferment eligibility for active-duty military personnel, among other items.

Deferment & Forbearance has been updated to reflect the new deferment option for certain military personnel. The brochure provides a borrower-friendly table of eligibility criteria for the deferment options.

PLUS-Loan Pointers has been updated to reflect the new PLUS-loan eligibility of graduate and professional students. The brochure describes the advantages of PLUS loans, discusses issues that students and parents should consider before taking out a PLUS loan, lists alternatives to PLUS loans, offers information about the PLUS Master Promissory Note and describes PLUS-loan deferment, forbearance and cancellation options.

Repayment Estimator provides estimated monthly payments and total interest costs for various loan balances based on the new fixed rates for Stafford and PLUS loans, the prevailing variable rates on Stafford and PLUS loans disbursed between July 1, 1998, and June 30, 2006, and the maximum variable interest rates on those loans.

Resolve Your Default, which offers advice to defaulted borrowers, has been updated to reflect the new standard to qualify for loan rehabilitation.

These and other free publications may be ordered online.

USA Funds Life Skills^®
Components of USA Funds’ financial-literacy program for college students have been revised to reflect the new student-loan terms enacted in the HERA.

Online Resources
USA Funds has updated and expanded information in the Borrower section of its Web site to reflect provisions of the new law. A special feature, “New Law Changes Student-Loan Terms” also highlights for borrowers the key loan-program changes.