Wachovia released the following letter to its clients this afternoon:
Dear Graduate and Professional School Partners,
We have made an important business decision that we will no longer be
accepting new applications for private graduate and professional loans
effective close of business on October 1, 2008.
Please note that this decision is entirely independent of today's
announcement that Wachovia is selling its banking business to Citigroup.
The specific private loan programs that will be impacted on October 1 are:
. Wachovia Graduate Loan
. Wachovia Medical Loan
. Wachovia Residency Loan
. Wachovia Law Loan
. Wachovia Bar Loan
Please note that this decision does not impact our participation in the FFEL
program, and we will continue accepting and processing federal student loans
for both undergraduate and graduate students.
For students impacted by this change, we will continue to process all
graduate and professional private loan applications received by the close of
business on 10/1/08 (certification not required by the deadline).
Additionally, we will continue to service applications in the decision
process and, for approved applications, disbursing funds and servicing
existing customers while in school and in repayment.
We made this decision in light of the current overall financial industry
environment. We recognize that this may have an impact on schools and
students, which has made this a difficult decision for us. We are very
grateful for the opportunities we have had to serve the education financing
needs of your students through our private student loan products and look
forward to continuing to support your students through our participation in
the FFEL Program.
Sincerely,
Ted Sparks
President
Wachovia Education Finance
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