Released on = August 3, 2007, 10:18 am

Press Release Author = Brooke Heath

Industry = Education

Press Release Summary = A new act is passed to help protect students and families
with private educational loans.



Press Release Body = Washington, DC, August 2, 2007--Yesterday, the U.S. Senate
Committee on Banking, Housing, and Urban Affairs unanimously voted to pass a bill
that will establish requirements for private institutions that lend educational
loans. In light of the passing of the Student Loan Sunshine Act to protect students
who borrow federal loans, the committee initiated this bill to give students the
same protection when borrowing private loans.

The purpose of the new bill, known as the Private Loan Transparency and Improvement
Act of 2007, is to prevent unfair and deceptive practices in private educational
loans and eliminate conflicts of interest between lenders and school officials.

The act would ban private lenders from giving gifts of value over $10 to a college
or university employee--this includes transportation, lodging, and meals. It would
also require that private lenders disclose more information to borrowers than is
currently being disclosed. This information includes the terms and costs of a
borrower's loans such as the range of potential interest rates, whether the interest
rate is fixed or variable, the need for a co-signer, finance fees and charges, and
deferment options, to name a few.

The act was initiated by Senator Christopher J. Dodd (D-Conn). Dodd, who is
currently serving as chairman of the U.S. Senate Committee on Banking, Housing, and
Urban Affairs, worked to develop the final version of the bill with Senator Richard
Shelby (R-Ala.).

The Private Loan Transparency and Improvement Act will be voted on by the full Senate.

"The passing of this bill will ensure that students and families receive the best
savings and values with their private educational loans," said EdFed's customer
service manager, Jodie Corzano.

"It's important that with the rising cost of college tuition, students get the
financial aid they need so that they don't walk away from the experience with a
lifetime of student loan debt to pay off. At EdFed, we are doing our part to help
students and graduates manage the loans that they borrow while in school and save as
much money as possible."

About EdFed:

As a leader in the student loan industry, EdFed is dedicated to helping students and
graduates realize all of their educational goals and meet their loan and
consolidation needs.

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Web Site = http://www.edfed.com

Contact Details = 175 S. Lake Ave. Suite 200
Pasadena, CA 91101
626-234-9423
bheath@edfed.com