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For Immediate Release
March 18, 2004
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White: KeystoneBEST Loans Can Save
Area College Students $1 Million
Harrisburg -- The KeystoneBEST student
loan, the nation's lowest-cost Stafford student loan, is now available
to Pennsylvania students for the 2004-05 school year, according to state
Sen. Mary Jo White (R-21).
White said that through the
KeystoneBEST program Pennsylvania students and their families will save
more than $70 million annually, which includes $1,096,000 in savings for
residents in the 21st Senatorial district.
Typical Stafford loan programs charge
up to 4 percent of the loan amount in up-front fees. Under KeystoneBEST,
the Pennsylvania Higher Education Assistance Agency and its lending
partners pay these fees on behalf of the student. A student borrowing
$5,500 would have an additional $220 that he or she can immediately use
for their educational expenses.
"Since 1995, this program has saved
Pennsylvania students and their families more than $220 million in
up-front fees," White said. "That total includes more than $165 million
in the last three years. The program's exceptional repayment benefits
have the potential of saving students significantly more."
KeystoneBEST is also unique in that it
combines immediate up-front savings with long-term repayment benefits. A
KeystoneBEST borrower can reduce his or her interest rate by one-quarter
percent by choosing automatic direct debit of payments and receive an
additional two-percent interest rate reduction upon making 48
consecutive on-time payments.
Eligibility for KeystoneBEST requires
that Pennsylvania residents must attend a school approved by the U.S.
Department of Education (USDE), regardless of the school's location.
Eligibility is also extended to out-of-state residents attending a
USDE-approved school located within Pennsylvania. Although there is no
income requirement, the applicant must be eligible for a standard
Stafford Loan.
Interested parties must complete the
Free Application for Federal Student Aid (FAFSA) to determine their
student aid eligibility and apply for KeystoneBEST. Further information,
as well as a list of participating lenders and an electronic FAFSA form,
is available by calling 1-800-692-7392 or visiting
www.aessuccess.org.
CONTACT: Leigh Ramsey (717) 787-6984
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