The ebb and flow of lending institutions participating in the private education loan market has been somewhat difficult to track over the years. Back in 2008 we witnessed a large number of organizations dropping out of the industry. However, over the course of the past few years, a good number of lenders have gotten back into the student loan market.
This week (yesterday), U.S. Bank sent a notice stating that as of March 29th, 2012 (tomorrow), they will no longer be accepting loan applications. You can find the notification letter below.
In addition, a source from the financial aid industry recently shared with CheapScholar.org that all of the education loan reps from Chase Bank were let go. This is probably a good indication that Chase Bank will be following suit with U.S. Bank’s exodus from the student loan market.
What does all this mean for students and families? Hopefully these large lenders discontinuing education loans is not a sign of what’s to come with the student loan industry as a whole. While loans are not the preferred method to pay for college, they do provide students accessibility to an education that they may not be able to afford otherwise. If you are a student that has utilized an education loan from U.S. Bank or Chase Bank in the past and need to start the search for another lender, please feel free to utilize CheapScholar’s Private Loan Comparison Tool or visit our Education Loan Resource Center to view all your different options and get helpful tips.
Letter From U.S. Bank To Participating Institutions:
Over the years, U.S. Bank has deeply appreciated the student lending relationship we have shared with your school and its students and families.
We regret to inform you that U.S. Bank is exiting the private student lending business and will no longer accept applications for student loans after March 29, 2012. Please know that this announcement applies to all schools and is not specific to your institution.
Any applications received by U.S. Bank up to and including March 29, 2012 will be processed normally. Loans received by that date that are approved and certified by your institution will be disbursed according to your normal disbursement schedules.
As a school partner, we are asking you to do the following:
|•||Remove U.S. Bank from any lender lists published by you either hard copy or electronic versions located on your Web site or through e-mail correspondence.|
|•||Do not forward any “requests for information” on our program as it will not be acted upon.|
|•||Please continue to certify requests from U.S. Bank as these represent loan requests made on or before the 3/29/2012 date. U.S. Bank will continue to request certifications and send all disbursements through existing channels until all disbursements have been completed.|
|•||Direct students with questions about existing student loans or applications in process with U.S. Bank to call our customer service line at 800-242-1200.|
U.S. Bank continues to be a proud partner with colleges and universities across the country. Through our on-campus branch networks, our program sponsorships and our lending and financing, we look forward to continuing to serve schools, students and families across the country with their banking needs.
If you have additional questions, please contact us at 800-242-1200, select option 2 and then 2 on your phone.
We apologize for any inconvenience this may cause, and we thank you for the business you have done with U.S. Bank.
U.S. Bank Student Lending