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For Immediate Release 
March 31, 2010


 

Contact: Tara Payne
(603) 227-5318
mediainquiry@gsmr.org
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Legislation Ends Local Funding of Federal Student Loans;
Threatens College Planning Support for NH Families

Concord, NH - New Hampshire students and parents who borrow federal student loans to pay for college are no longer able to turn to a local resource. The NHHEAF Network Organizations are comprised of three active nonprofit agencies; NH Higher Education Assistance Foundation (NHHEAF), Granite State Management & Resources (GSM&R) and New Hampshire Higher Education Loan Corporation (NHHELCO). The approval of legislation added into the healthcare bill by both the U.S. House and Senate and signed by President Obama on Tuesday concluded NHHEAF and NHHELCO's tortuous legislative campaign to preserve the involvement of private nonprofits in the origination of federal student loans. NHHEAF has been most notably recognized for its strong default prevention programs, postsecondary school support and singular New Hampshire focus. Under the new bill, all federal student loans will be issued directly by the government. What began in 1962 as a small agency committed to increasing access to student loans, NHHEAF evolved into New Hampshire's premiere college planning resource and a trusted supporter of programs that encourage education beyond high school. The outreach and charitable giving programs it administers have helped tens of thousands of New Hampshire students to pursue their educational aspirations. And, NHHEAF receives high levels of support from the State's financial aid association, postsecondary schools, related college access programs, secondary schools and the Governor's office. After almost 50 years of serving New Hampshire, NHHEAF is in a unique position as the only provider of college planning and access services with the infrastructure, expertise and resources to deliver a full complement of statewide K-12 programming. Given municipal budget challenges, public high schools rely upon NHHEAF for these expert college preparation resources to contribute to a college-going culture in their schools.

"While this is a distressing moment in the history of these fine organizations, we must concentrate on moving forward in a new way to fulfill an important mission in service to New Hampshire," according to President & CEO, René Drouin. Due to the resolve of New Hampshire's congressional delegation, most notably Representative Carol Shea-Porter, GSM&R will be eligible to continue to be partially involved in assisting borrowers. The legislation provides the potential for nonprofits to service student loans issued by the federal government. "The support we have received from students and parents has made a meaningful difference in Washington. While the organizations will undoubtedly change, we can call upon our default prevention and customer service expertise to continue to support borrowers in repayment." Currently, GSM&R plays a vital role in helping New Hampshire students understand the financial responsibility associated with student loan borrowing by ensuring that borrowers meet their student loan obligations and avoid the negative repercussions of default.

Regarding the future plans for NHHEAF, Chair of the NHHEAF Board, Michael DeBlasi shared, "The board and executive management have not constructed any definitive plans. But, one thing is certain: the service innovation, longevity and financial stability which made NHHEAF a leader in its industry will serve it well as it positions itself for the next chapter."

 

The NHHEAF Network Organizations are comprised of three active 501(c) (3) nonprofit organizations that provide students and families with the resources and funding to pursue higher education aspirations. Funds generated by the Organizations make their charitable mission possible as student loan earnings are reinvested in programs and services that benefit citizens of New Hampshire. For more information, visit www.nhheaf.org.