PHEAA Wins Federal Loan Servicing Contract
Agency to help manage nation's growing student loan portfolio
Harrisburg, PA (June 17, 2009) - The Pennsylvania Higher Education Assistance Agency (PHEAA) today announced that it has been selected by the U.S. Department of Education to service a portion of the nation's growing federally-owned student loan portfolio.
PHEAA was one of six servicers selected to participate in the final phase of the Department of Education's Title IV Student Loan Management/Servicing solicitation. This solicitation includes the capability for all Title IV loans. PHEAA is one of four servicers to be awarded a contract.
“We welcome the federal government's confidence in PHEAA to provide services to borrowers of federally-owned debt,” said PHEAA Board Chairman, William F. Adolph. “We have the strength, the flexibility and the dedicated workers needed to fulfill this contract. We will work with Washington to help ensure that future generations of students can afford a higher education, while keeping a solid financial footing throughout their repayment process."
PHEAA is the nation's largest, nonprofit student loan service provider and the industry leader in premier customer service and technology.
“When we were chosen to participate in this process, we knew that our business model must evolve quickly in order to keep pace with changes in the student loan industry,” said Senator Sean Logan, Vice Chairman of the PHEAA Board. “Identifying and responding to new business opportunities helps us to better support our operations during a challenging economy.”
PHEAA will continue to guarantee and service student loans for existing customers.