The Department of Education has announced its intent to implement a new program under the Ensuring Continued Access to Student Loans Act of 2008 pursuant to which the Department will purchase Stafford loans made for the 2008-09 academic year and thereby provide eligible lenders with funds to make additional loans. While RISLA intends to continue to rely on traditional financing sources for its Stafford loan programs, we have notified the Department of our intent to participate in the loan sale program so that we have a guaranteed backup for funding future loans.

Unfortunately, the Department has indicated that it will not purchase Stafford loans that have many of the borrower benefits offered by RISLA, including interest rate reductions for on-time payments on Stafford loans, and interest rate reduction for borrowers who pay electronically (ACH). The Department's program will also not permit us to offer our Nurse, Nurse Educator, Teacher, and Pharmacy Rewards programs on loans taken out for the 2008-09 academic year.

Therefore, effective for all Stafford loans guaranteed on and after July 15, 2008 RISLA will only be able to offer a zero origination fee on Stafford loans and a .25% interest rate reduction to Stafford loan borrowers who pay electronically. Under the terms of the Department's loan sale program, no other borrower benefits will be offered on Stafford loans guaranteed on and after July 15, 2008.

While we regret having to discontinue many of our borrower benefits, we believe that we must do so to ensure that we have a guaranteed source of funding to make Stafford loans to needy students and their families in the future.