Fees Reduced for Montana Student Loan Borrowers

Montana Higher Education Student Assistance Corporation (MHESAC) recently announced that it will offer a zero-fee, federal Stafford loan product for Montana students for the upcoming 2006-2007 academic year beginning July 1, 2006.

"MHESAC will pay the federally required 2 percent origination fee and the 1 percent default fee (formerly called a guarantor fee) for Montana Stafford student loans," said Jim Stipcich, CEO of Student Assistance Foundation (SAF). SAF, a Montana nonprofit, manages and services student loans for MHESAC. The default fee is normally collected from the borrower by the lender as a financial reserve to protect the loan program in cases of student default.

Additionally, beginning on July 1, MHESAC will also pay all default fees for its Montana’s Choice PLUS student loan products, which include:

• Montana’s Choice PLUS for parents and

• Montana’s Choice Graduate PLUS for students.

"Providing a true, zero-fee Stafford Loan and paying for default fees is really about helping students achieve their education dreams," Stipcich said. "These new benefits are making college even more affordable for Montana students."

MHESAC is a 150(d) nonprofit Montana student loan provider that has helped over 110,000 Montanans lower the cost of financing their higher education with over $28 million in loan discounts and interest rate reductions. MHESAC raises money and capital through the sale of tax-exempt bonds. For more information, visit the MHESAC Web site at http://www.mhesac.org.

Student Assistance Foundation is a 501(c)(3) nonprofit Montana corporation that provides students with knowledge and tools to finance and pursue their post-secondary education. Funds generated by SAF are returned to Montanans in the form of education grants and public benefit programs. For more information, visit the SAF Web site at http://www.safmt.org.

Contact:
Jeannie Huntley, Marketing & Communications Director
Student Assistance Foundation
406.495.7394