March 13, 2008
FOR IMMEDIATE RELEASE
College Loan Corporation Releases Its Private Loan Principles
Company Formalizes Its Best-for-Borrower Approach for Private Loans
SAN DIEGO (March 13, 2008) College Loan Corporation (CLC), one of the nation's top 10 student loan providers, continues its commitment to responsible lending by announcing its private loan principles today. These principles help students and parents make wise financial decisions when determining how they will pay for college.
"Many young students do not understand the details and complexities of borrowing for school," said Brian Jones, general counsel for College Loan Corporation. "CLC makes it easy for students and their families to make the right financial decisions to pay for college."
As the winner of The San Diego Better Business Bureau's 2006 Torch Award for Marketplace Ethics, the Company has always pursued the highest standard of ethical marketing and compliance practices. The ten private loan principles announced by CLC are:
- Free Money – CLC encourages families to find “free money” for school, including scholarships and grants. The Company’s website, www.collegeloan.com, provides a link to a free scholarship search engine along with tips on avoiding scholarship scams.
- Federal Aid First – CLC advises all families to complete the FAFSA, as federal loans generally offer better terms and conditions than private loans.
- School Certification – All of CLC’s private loan products now require schools to certify the student’s financial need. CLC strongly supports the financial aid office’s role in assuring responsible lending and believes that all lenders should require school certification and help students limit borrowing.
- In-School Payments Not Required – Students are free to defer loan payments while in school and for six months after graduation. This flexibility allows students to focus on their studies instead of their immediate financial needs.
- In-School Interest Payments Allowed - CLC offers students the option to pay accruing interest on student loans while in school. With the CLC® Premier Loan™, students can lock in a 0.50% interest rate reduction for the life of their loan by making quarterly interest-only payments while in school. This eliminates capitalization of unpaid interest and saves hundreds of dollars over the life of the loan. Also, once in repayment, the Company promotes responsible repayment habits by offering 0.25% interest rate reduction for choosing automatic payments.
- Cooling Off Period – CLC waives accrued interest and any origination fees on disbursed amounts when the borrower returns all loan proceeds within 5 days of disbursement.
- No Prepayment Penalty – Families who repay their student loans early are not charged prepayment fees of any kind.
- Late Payment Flexibility – CLC does not consider a student’s payment late unless it is received more than 15 days after the due date.
- Flexible Repayment Terms – CLC extends the length of time students have to pay back a loan based on the amount of money that they have borrowed. This helps keep loan payments affordable while giving students the flexibility to pay more if they can afford it. Payment forbearance options are also available to assist with temporary repayment difficulties.
- Capitalization Only at Repayment - CLC only capitalizes interest on loans upon entering repayment. This limited capitalization helps reduce the amount of money students will owe when they finish school.
CLC's efforts to help families make wise financial decisions are complemented by their award-winning service:
- Calls are answered 24 hours a day, 7 days a week by highly-trained professionals
- 90% of calls answered by experts in less than 30 seconds
- No phone mazes, long waits on hold, or entering of data through a telephone keypad
- Personalized advice to meet the needs of each family’s unique financial situation
- One Call Promise® eliminates phone tag and resolves matters quickly
- Financial literacy programs and tools to help families understand all of their options, including grants and scholarships
"College Loan Corporation was founded with the belief that integrity and ethical business practices would be the cornerstone of our success," added Jones. "We will continue to offer families the same high standard of ethical service for which we are known."
About College Loan Corporation
College Loan Corporation (CLC), headquartered in San Diego, is a top 10 student loan provider, managing more than $10 billion in student loan assets. By offering innovative loan products and industry-leading customer service, the Company has helped make higher education possible for more than 800,000 students and families. CLC is the proud winner of the 2006 Torch Award for Marketplace Ethics, awarded by the Better Business Bureau of San Diego County. CLC's student loan hotline offers expert loan consultants 24 hours a day, 7 days a week at 1.800.2COLLEGESM. For more information, visit collegeloan.com.