PLUS Loan Auction Cancelled (for now)

Paying for College
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<p>As some of you may know, the Department of Education, through legislation from Congress, was set to auction off the rights to make PLUS loans to the two highest bidders for each state. The winning bidders would be the only lendors allowed to make new PLUS loans (those with loans prior to the 09-10 academic year would have proceeded as normal) in the state in which the student was attending school. The state of permanent residence wouldn’t have mattered. As you’ll see from the link below, the plan didn’t work out quite as expected. SallieMae and most other large lenders refused to bid.</p>

<p>[IFAP</a> - Electronic Announcements](<a href=“http://ifap.ed.gov/eannouncements/041009PLUSAuction.html]IFAP”>http://ifap.ed.gov/eannouncements/041009PLUSAuction.html)</p>

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<p>Hard to believe the feds were out of touch enough that they thought lenders would actually want this business (or maybe not so hard to believe …).</p>