<p>greetings We used PHEAA (Pennsylvania)for our subsidized stafford loans for the last two years, however due to the issues in the student loan business, we were informed that they will no longer fund new loans, only service existing ones. PHEAA seemed to have the best terms when I researched this a couple of years ago. Now with a lot of the players out of the business and things changing so fast, I would like to know if anyone out there has found any low cost stafford loan providers.</p>
<p>We applied for student loans through Citibank, which was one of the lenders that CMU had listed. The loans were then serviced by PHEAA on the same terms that we had on Citi. All the payment information was readily available online with PHEAA and was done accurately. We later consolidated the loans in 2005 and added the final year of college loans in 2006 all with Citi which is now lender and servicer. As promised, the rate reduction for online payments, and for on time payments for 36 months, did occur and without our intervention.</p>
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<p>they told me that going forward to 2008-2009 there would still be no origination or default fees.</p>
<p>I was upset to learn that PNC was now charging 1%, no thanks</p>