Palo Alto, California - October 29, 2008 - More than 1 in 3 FFELP respondents to a recent SLA survey indicated that they are considering a switch to Direct Lending (29.4%) or have already committed to making a change (6.3%) for the 2009-10 academic year. These results are based on a flash survey of 416 financial aid administrators conducted by Student Lending Analytics between October 21 and October 24, 2008.

Here are several highlights from this survey (a more detailed analysis of the survey is available at http://www.studentlendinganalytics.com/images/survey102708.pdf):

• Four year public and private institutions in FFELP have a similar propensity to consider switching to Direct Lending, with 31.2% of four-year public and 31.8% of private institutions considering such a move.
  • Meanwhile, roughly one in five (22.2%) of the two-year publics in FFELP are considering a move to Direct Lending.

• The most important reasons cited by FFELP institutions considering (or switching to) Direct Lending are (rating of 5.0 indicates Most Important factor):
  • Concerns about financial strength of lenders (Rating of 4.38)
  • Borrower confusion (4.13)
  • Issues with customer service/loan processing (3.95)
  • Time required to maintain lender lists (3.73)
  • Dwindling borrower benefits (3.60)

• 58% of those FFELP schools considering a move to Direct Lending indicated that they would likely make a decision by January 31, 2009 to ensure adequate time to implement it for the 2009-10 academic year.

• For the 2/3 of FFELP institutions who remain committed to FFELP, their primary reasons for staying with the program include:
  • Customer service (Rating of 4.56)
  • Borrower choice (4.25)
  • Borrower benefits (3.92)
  • Concerns over the systems conversion required to implement DL (3.80)
  • Direct Lending reconciliation process (3.48)

ABOUT STUDENT LENDING ANALYTICS. Student Lending Analytics (SLA) provides research and advisory services to find the best lenders for students. SLA manages the RFI process for colleges and universities utilizing an objective, comprehensive and analytical approach. SLA's syndicated customer service research surveys students, financial aid administrators and independently rates lender call center operations and websites. SLA has NO affiliations with any student lenders. For additional information on Student Lending Analytics' research and services, contact Tim Ranzetta (see contact information below) or visit www.studentlendinganalytics.com.

Posted 10/29/08 to www.NASFAA.org. Posting of press releases is done as a service to Members and does not imply endorsement or support by NASFAA. NASFAA does not review this information for content or accuracy.