Palo Alto, California - March 12, 2009 - More than 1 in 4 FFELP respondents to a recent SLA survey indicated that they are considering a switch to Direct Lending (15.0%) or have already committed to making a change (10.7%) for the 2009-10 academic year. These results are based on a flash survey of 551 financial aid administrators conducted by Student Lending Analytics between March 5 and March 9, 2009.

Here are several highlights from this survey (go to Student Lending Analytics blog for a complete analysis of the survey results):

• A similar percentage of survey respondents from both 4-year public (13.2%) and private (12.5%) institutions in FFELP have already committed to Direct Lending for 2009-10 academic year.
  • 7.5% of two-year publics have committed to move to Direct Lending
• 1 in 5 respondents (20.0%) from two year public institutions are still mulling over whether to move to Direct Lending:
  • Comparable numbers are 15.4% and 12.5% for four-year private and four- year public institutions, respectively.
• Based on 2007-08 loan volume of survey respondents, institutions representing over 1/3 of the FFELP volume in the survey (33.7%):
  • Have made the decision to go to Direct Lending (15.0%) OR
  • Considering a change to Direct Lending (18.7%).
• Estimates based on survey results indicate that Direct Lending could grow to 40-45% market share of federal loans from 26% in 2008-09
  • Current 26% market share figure for Direct Lending based on latest market share estimates for 2008-09 from the Department of Education
  • Large proprietary schools in FFELP, not in survey, could be swing factor
  • The 15.0% of FFEL volume that has already made the decision to go to Direct Lending could boost Direct Lending share up to 37%
• For those schools participating in FFELP and currently considering a change to Direct Lending, almost 1 in 3 (32.3%) respondents indicated that the Obama budget proposal to eliminate FFELP would make them "more likely to move to Direct Lending in 2009-10."

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 and 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 at (650-218-8408) or visit www.studentlendinganalytics.com.

Posted 03/13/09 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.