The Wyoming Student Loan Association (known as WyoLoan) provided these three reasons for their decision:
- "WyoLoan’s agent for originating and disbursing loan funds has undergone a transition and has advised WyoLoan that it will not be able to disburse loan funds after March 31,2010.
- According to Mapping Your Future, WyoLoan's originator and disbursement agent is a division of Western States Learning Corporation:
Loan Servicing, a division of Western States Learning
Corporation, is the loan servicing agent for Wyoming Student Loan
Corporation (WyoLoan), First Education FCU, Trona Valley FCU, and
UniWyo FCU. Loan Servicing also administers the Wyoming Teacher
Shortage Loan Repayment Program (TSLRP) and the Wyoming Investment in
Nursing Program (WYIN) for the State of Wyoming. Western States
Learning Corporation is a private, nonprofit corporation that partners
with lenders to service their student loan portfolios.
- During the period of WyoLoan’s search for a replacement originator, the U.S. House of Representatives passed H.R. 3221 which, if enacted, would eliminate new loans under the Federal Family Education Loan Program (FFELP) after June 30, 2010.
- The Wyoming delegation in Washington and others have endeavored to protect students’ right to choose their lender under the student loan program and to avoid adding to the federal deficit and debt. However, it appears likely that proponents of government lending have the votes to pass a similar measure in the U.S. Senate."
The company did indicate that they would consider ending the suspension should the legislation fail to pass. WyoLoan was the 85th largest FFELP loan originator in 2007-08 with $39.5 million in guarantees. I wonder if there will be more announcements like this in the coming weeks, while student aid reform legislation drags on in Congress.
Comments