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http://http://www.insideindianabusiness.com/newsitem.asp?ID=23264
Press Release
Indianapolis, IN (May 10, 2007) ISM Education Loans (ISM) officially announces a newly approved benefit to lower education loan payments for eligible, active duty military members and their spouses. Effective July 1, ISM will offer deferments and forbearances that are interest-free for up to five years for the student loans of eligible armed services members and their spouses. ISM will absorb the borrowers interest cost during this period.
ISM, a not-for-profit education loan provider, is the first in Indiana and among the first in the nation to offer these benefits to active duty members of the U.S. armed services and their families. Beginning July 1, 2007, ISM will forego interest on education loans owned and serviced by ISM for both active military members, as well as their spouses.
I know some members of the military and their families have struggled to make ends meet as tours of duty have been extended, said Stephen W. Clinton, ISM President. Interest which isnt paid is added to the loan balance, which could result in service members returning from Iraq or Afghanistan owing much more than when they left. We intend to keep that from happening for our service-member borrowers and spouses and feel we should add this benefit.
Repayment of student loans can be a hardship on the finances of military families. While there are several provisions in federal education loan programs that allow service members to stop making payments while on active duty, the interest on their student loans continues to accrue.
ISM Education Loans believes those who are sacrificing for our country deserve more, said Clinton. The interest meter for some of our borrowers is increasing hundreds of dollars each month, and theres no help at all for spouses. ISM wanted to change that.
We hope that other student loan lenders will join us in giving members of the military a break on their loans.
The process of providing documentation and establishing eligibility for existing programs such as deferments and forbearances is complicated and sometimes difficult to complete, according to Clinton. We also intend to try to streamline the paperwork process. There are some details to be worked out, which is why were delaying implementation until July 1.
The new benefit offers these provisions:
· It applies to any active duty service-member and their spouses whose Stafford, PLUS or consolidation loans are owned and serviced by ISM
· ISM will write off up to 60 months of interest which accrues during the period of active duty service and will extend the benefit to spouses of active duty service members, provided ISM owns and services the spouses loans.
· Borrowers who do not have loans through ISM can consolidate their loans with ISM to take advantage of this benefit
The ISM Board of Directors has authorized the benefit for a two-year period beginning July 1, 2007. Service members and spouses who qualify within two years from July 1st will be eligible to receive up to 60 months of the benefit, during periods of active duty service.
Founded 27 years ago, ISM Education Loans ( www.ismloans.org ) is Indianas only designated not-for-profit provider of student loan services, as authorized in the federal Higher Education Act. It employs 130 people in its Indianapolis office. ISM services loan accounts of 100,000 borrowers, representing $1.5 billion in education loans.
Press Release
Indianapolis, IN (May 10, 2007) ISM Education Loans (ISM) officially announces a newly approved benefit to lower education loan payments for eligible, active duty military members and their spouses. Effective July 1, ISM will offer deferments and forbearances that are interest-free for up to five years for the student loans of eligible armed services members and their spouses. ISM will absorb the borrowers interest cost during this period.
ISM, a not-for-profit education loan provider, is the first in Indiana and among the first in the nation to offer these benefits to active duty members of the U.S. armed services and their families. Beginning July 1, 2007, ISM will forego interest on education loans owned and serviced by ISM for both active military members, as well as their spouses.
I know some members of the military and their families have struggled to make ends meet as tours of duty have been extended, said Stephen W. Clinton, ISM President. Interest which isnt paid is added to the loan balance, which could result in service members returning from Iraq or Afghanistan owing much more than when they left. We intend to keep that from happening for our service-member borrowers and spouses and feel we should add this benefit.
Repayment of student loans can be a hardship on the finances of military families. While there are several provisions in federal education loan programs that allow service members to stop making payments while on active duty, the interest on their student loans continues to accrue.
ISM Education Loans believes those who are sacrificing for our country deserve more, said Clinton. The interest meter for some of our borrowers is increasing hundreds of dollars each month, and theres no help at all for spouses. ISM wanted to change that.
We hope that other student loan lenders will join us in giving members of the military a break on their loans.
The process of providing documentation and establishing eligibility for existing programs such as deferments and forbearances is complicated and sometimes difficult to complete, according to Clinton. We also intend to try to streamline the paperwork process. There are some details to be worked out, which is why were delaying implementation until July 1.
The new benefit offers these provisions:
· It applies to any active duty service-member and their spouses whose Stafford, PLUS or consolidation loans are owned and serviced by ISM
· ISM will write off up to 60 months of interest which accrues during the period of active duty service and will extend the benefit to spouses of active duty service members, provided ISM owns and services the spouses loans.
· Borrowers who do not have loans through ISM can consolidate their loans with ISM to take advantage of this benefit
The ISM Board of Directors has authorized the benefit for a two-year period beginning July 1, 2007. Service members and spouses who qualify within two years from July 1st will be eligible to receive up to 60 months of the benefit, during periods of active duty service.
Founded 27 years ago, ISM Education Loans ( www.ismloans.org ) is Indianas only designated not-for-profit provider of student loan services, as authorized in the federal Higher Education Act. It employs 130 people in its Indianapolis office. ISM services loan accounts of 100,000 borrowers, representing $1.5 billion in education loans.
