 | |||||||||||||||||||||||||||||||||||||
 | |||||||||||||||||||||||||||||||||||||
|
| | |||||||||||||||||||||||||||||||||||
 | |||||||||||||||||||||||||||||||||||||
 | |||||||||||||||||||||||||||||||||||||
The Competitive Loan Auction Pilot Program for PLUS loans is a new Federal Family Education Loan (FFEL) Program. This pilot program was mandated by Congress in the College Cost Reduction and Access Act of 2007 (CCRAA) and in the Higher Education Act (HEA) of 1965, as amended, Title IV, Part I, Section 499, Competitive Loan Auction Pilot Program.
Through the Competitive Loan Auction (Auction), the Secretary will award the right to originate PLUS loans to new parent borrowers under the Federal PLUS Program authorized by section 428B of Title IV of the Higher Education Act of 1965, as amended (HEA), for loan periods beginning on or after July 1, 2009 and ending June 30, 2011.
The Competitive Loan Auction Pilot Program will be conducted in three parts:
First, lenders must submit a pre-qualification form that collects specific information necessary for the Department (ED) to determine if the lender has the financial and technological resources necessary to make loans to parents under the PLUS loan program in the state(s) in which the lender will bid.
Secondly, once pre-qualified, a lender will be sent an Auction Information Sheet clarifying how a lender may submit a bid during the auction. The winning bids will be those that will accept the lowest special allowance payment (SAP), as defined in Section 438 of the HEA, they are willing to accept for Federal PLUS loans made pursuant to the auction.
The eligible lender submits a bid on the designated bid date.
Only two eligible lenders (as defined in Section 435(d) of the HEA meeting the pre-qualification requirements will be identified for each state and will be the only eligible lenders authorized to originate Federal PLUS loans to parents that will be new PLUS loan borrowers on or after July 1, 2009.
The winning lenders will be obligated to make PLUS to new borrowers until either the student graduates or no longer attends an institution within the state in which the lender is declared the winning bidder.
Federal Register Notice announcing the Competitive Loan Auction Pilot Program for PLUS Loans
Pre-qualification Form - Auction Pilot Program for PLUS Loans
MS Word (41K) | PDF (31K)Plus Loan Volume - Award Years 2006-07 and 2007-08
MS Excel (24K) | PDF (12K)Plus Loan Volume - Award Years 2006-07 and 2007-08 - Academic Level 1st and 2nd Year Borrowers
MS Excel (48K) | PDF (64K)
Submit all of the Pre-qualification forms and PLUS Lender of Last Resort Application forms to:
|
||||||||||||
|
|
|||||||||||
| |
||||||||||||
