Stafford loan for 08/09 from Bank of America?

Not to panic anyone else, but I called IEFC today to find out why I haven't received any loan paperwork yet. I am ready to submit my documentation for my student visa so I needed that. So I phoned them up and was told, "We sent that to you in May. But wait... oh no..." Then he proceeded to tell me something along the lines of, "Bank of America isn't going to be processing loans for the '08/'09 academic year but yours was done so early that they went ahead and processed it. So now it's going to be canceled and you're going to have to resubmit all your loan applications to us using another lender." I was like,  followed by    followed by  :\\\'(  I mean, REALLY. He said if I hadn't called, I likely wouldn't have known until right before my disbursal date. Fabulous, huh?

Fortunately, because I was nearing a mental breakdown about needing my visa, he offered to email me a copy of the original loan approval letter that I never got. As he put it, "Well, you'd have it already to use if it hadn't gotten lost in the mail." I just had to promise to resubmit my application. (Hello? of course!) So now at least I can show that I've been approved and actually redoing the Master Promissory note for another lender is just paperwork that can be done after my visa is done.

Anyway, I'm going to call back and get a better explanation when I have a clear head. I looked online and it still shows my approved loans there, which means I can't resubmit anything. But in case anyone else is getting loans through them, I thought I'd give a heads up that you should check on them. I'll give an update when I know more if anyone's interested. I was just pretty much in a panic today after he said the words, "resubmit your loan application" and the rest is a jumble. *SIGH*

Hey Angelina,

Sorry to hear about your situation!      Are you not eligible for FAFSA? 

I though I wouldn't be but I was approved.

Holly

 

I am. I completed the FAFSA to qualify, but you then have to actually *get* the Stafford loan through a specific lender. My specific lender apparently dropped out of the lending business (might be just for foreign universities, not sure).

Wow.  That is news to me.

I think that many lenders are dropping out of the business.

Seriously, the last time I got FAFSA I didn't have to apply to any specific lender.  I make my payments to the Federal Govt. 

I am really confused now. 

I had to fill out the FAFSA, then when I got that back I had to fill out a Master Promissory Note with a lender off the list. Then all that paperwork went to the university who certified how much I needed and sent stuff to the lender, who then completed the approval.

Of course now I'm totally paranoid that I did something wrong and that's why this is all screwed up. 

No, I think that is correct.  I chose my local credit union.

sorry to hear this Angela!  I've heard about lenders pulling out of the student loan market as well with the economy going down the toilet but how annoying that it wasn't communicated to you properly!  You'll get your loan with someone else though, never fear.

And I agree with bookgrl- from your description of the process it sounds like you did all the right things.  This totally is not your fault.

Thanks, I appreciate the votes of confidence. I sort of hit this panic wall and then started a tail spin but now that I've had a few hours' sleep, I realize that it will all be fine since I can still send my visa documentation in today. Dealing with the reapplication will be a formality.

I'd heard about lenders pulling out as well, but that's why I chose BoA; they're a big institution! Oh well, onwards I go!