The University of Texas-Pan American administration has been closely monitoring the situation with the student loan credit crunch and the potential impact to students for the fall 2008 semester. While a serious loan access problem may be averted, UTPA has been tracking all developments as they occur and is taking action to ensure that student loan funds are available to all eligible students.
UTPA believes that it is essential to prepare for a potential student loan credit crunch now. Several steps have been taken so far:
• Eligibility for grants and scholarships is maximized first for students in order to eliminate or reduce the need to take out student loans.
• The University is in close contact with student loan providers to monitor their continued participation in the federal student loan programs.
• A plan of action has been developed to transition current borrowers from one loan provider to others in the case that such action becomes necessary.
• New student borrowers will be provided access to student loan providers that have committed to continued participation in the federal student loan programs.
• UTPA has applied and been approved for participation in the Federal Direct Student Loan Program (FDSLP). This program provides access to federal student loans by having the U.S. federal government act as the lender for Stafford and PLUS loans. Participation in FDSLP ensures that UTPA student borrowers will have access to federal student loans for the upcoming academic year, regardless of private lender issues.
The University is making every effort to make sure that loan funding is available to our students should they have a need, regardless of what the lenders do. UTPA's Student Financial Services Office will be in contact with students, providing information and guidance on the steps they must take to ensure funding for the fall 2008 semester. UTPA remains committed to providing all eligible students financial aid, including loans, during the upcoming semesters.
For additional information, please contact the office at 956/381-2501.