The National Council of Higher Education Loan Programs (NCHELP) has released the results of a survey about college outreach and default prevention services provided by FFEL Program organizations.

According to the survey, in the last year their participating organizations (lenders, guaranty agencies, secondary markets and servicers):

• Provided hands-on financial literacy, college awareness and financial aid training to more than 1.4 million students and parents.
• Distributed more than 14 million brochures and publications in multiple languages on topics
• Trained more than 26,000 school guidance counselors who then assisted thousands of students to pursue their postsecondary goals.
• Hosted or supported approximately 10,000 financial aid nights to raise awareness about available funds to attend postsecondary education, help students and families fill out a FAFSA, and teach students how to apply for college.
• Provided free online career, college, financial aid and financial literacy assistance to 48 million visitors.
• Operated 20 College Access Resource Centers and hosted 26 financial aid hotlines to provide additional assistance to students and families.
• Assisted more than 6 million students, parents, school and lender representatives via phone and email.
• Offered leadership and support to the federal College Access Challenge Grant, GEAR UP and TRIO Programs (70 percent of responding organizations)
• Trained 62,000 financial aid administrators and made over 5,400 campus visits to assist with the processing of loan funds.

Many NCHELP members support student loan reform legislation that preserves some of the aspects of the FFEL program. In July, they released the Student Loan Community Reform proposal, which would preserve a role for local not-for-profit and state-based agencies to provide originations or servicing in their states; permits current originators to continue to provide origination services if schools or students choose them; expand default prevention assistance; and preserve jobs in the FFEL sector.

The Congressional Budget Office scored the proposal last month and found that it would not save as much money as the Administration's plan for 100% Direct Lending.

Posted 10/09/09 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web site questions or comments to Web@NASFAA.org.