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USA Funds Transfers Ownership of Guaranty Agencies To Great Lakes

By Brittany Hackett, Communications Staff

USA Funds on Wednesday announced that it will transfer ownership of its education loan guarantor affiliates United Student Aid Funds and Northwest Education Loan Association (NELA) to Great Lakes Higher Education Corporation. The transfer will be effective January 1, 2017.

Under the new ownership, the two guarantors—which have a combined portfolio total of about $50 billion—will continue to operate as individual guarantors and will maintain their current relationships and commitments to lenders, services, institutions, and the Department of Education (ED).

According to a press release from USA Funds, the transfer of United Student Aid Funds, the largest education loan guarantor in the U.S., and NELA contributes to the wind-down of the Federal Family Education Loan Program (FFEL), which ended in 2010 with the move to the Direct Loan Program.

“[T]he dramatic changes sweeping the higher education landscape and the emerging needs of our nation’s workforce and economy compel us to direct our full attention to helping more students succeed in postsecondary education and launch into rewarding careers,” USA Funds President and CEO Bill Hansen said in a statement.

The merge will allow USA Funds to focus on promoting Completion With a Purpose, which aims to enhance student success in college and beyond. The nonprofit will also receive support for these initiatives through annual mission-focused grants from Great Lakes.

 

Publication Date: 12/8/2016


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