Student loan issuer Nelnet announced that because of recent actions from Congress, including the implementation of H.R. 5715 a bill that increases the amount of money available from Federal student loan programs it will continue to originate new Federal student loans to all students, regardless of the school they attend, for the 2008-2009 school year.
Without the recent government action it would have been difficult to continue lending this fall, the company said.
The recent bill increases the maximum annual unsubsidized Stafford Loan amounts that may be borrowed by undergraduate dependent students through the Federal Family Education Loan program by $2,000, as well as increases the maximum limit on these loans to $31,000 for dependent undergraduates from $23,000 and to $57,000 from $46,000 for independent undergraduates.
The bill also allows Secretary of Education Margaret Spellings to purchase loans from private lenders, among other changes.
Nelnet is reccomending that students continue to remain with their servicer even if their loan is sold to the Department of Education under the bills plan. This is to facilitate consistency for students.
