Here is a copy of the letter that U.S. Bank recently mailed to financial aid administrators:
Dear Financial Aid Officer,
Since the creation of the Higher Education Act of 1965, U.S. Bank has been a major participant in the Federal Family Education Loan Program (FFELP). As a lender, U.S. Bank has provided loan funds for millions of students and their families and has partnered with colleges and universities to finance students' higher educations.
Beginning September 26, 2009, U.S. Bank will suspend the origination of FFELP loans until further notice. U.S. Bank will continue to support students and schools by processing completed master promissory notes and school certifications received prior to September 26, 2009. Funding will continue as scheduled for all approved loans. However, loans must be fully disbursed by September 15, 2010.
Please remove U.S. Bank from printed and online Federal loan lender lists provided to students and parents as soon as possible. Should your office, students or parents have questions regarding this change, please call the U.S. Bank Student Loan Center at 800-242-1200.
U.S. Bank is committed to continuing its support of higher education through bank products and services to students, families, and institutions of higher learning. U.S. Bank will continue to offer its No Fee Education Loan, which is intended to supplement the gap between scholarships, grants, aid, and federal loans to eligible schools and qualified borrowers. Please keep U.S. Bank on your school's private loan lender list. U.S. Bank values your relationship and each student's as well. U.S. Bank will continue to work with your institution to assist students in reaching their higher education goals. Your Student Banking Market Manager will be in touch with you regarding additional details on the U.S. Bank No Fee Education Loan.
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Given the recent changes in private loan pricing by other lenders, the last sentence seems to indicate that U.S. Bank has some changes coming shortly.
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