Student Lending Analytics reports that Chase sent this email to financial aid administrators on Monday. It said:
Beginning April 17, 2010, we will suspend accepting all new FFELP loan applications for the 2009-10 academic year. This includes applications submitted through the Chase platform and all third-party platforms (e.g., Sallie Mae, Great Lakes, AES, ACS, ASA and HESC). FFELP loan applications received prior to April 17, 2010, will continue to be processed, provided that they are set for first disbursement by May 7, 2010.
Chase will no longer be involved in student loans. Chase, which was last year the fifth largest distributor of federal student loans, is the consumer division of JPMorgan Chase, one of the largest banks in America.
Chase is the first major lender to announce an end to its student loan business. Chase may know a rising from a setting sun. Is student loan reform happening? Apparently almost three out of four colleges are already prepared to move to direct lending next year.
