Banking Services

Student Loans-Not Currently Offered

Student Loan Program Update
Peoples State Bank
1/22/2009

Effective February 2, 2009 Peoples State Bank will suspend its participation in the U.S. Department of Education's Federal Family Education Loan Program (FFELP) for student loans. Loans already funded will continue to be serviced as they were in the past.

Previously Peoples State Bank has funded student loans through the loan servicer AES/PHEAA. Shortly after the loan was fully disbursed to the school, AES would purchase the loan from the Peoples using monies obtained from investment sources, typically large banks. This freed up Peoples' capital to purchase additional student loans or make other loans to bank customers. AES would then continue to service the loan and the borrower would deal with AES throughout repayment.

Because of recent economic changes, AES has been unable to find suitable funding sources to purchase the loans. Due to the cost and the length of time involved in holding these loans, and the need for Peoples to continue to make other types of loans for our customers, we find it necessary to suspend our participation in the program. Because student loans are important to our customers, Peoples will continue to monitor the economic situation for opportunities to assist students with financial needs in the future.

If you currently have Stafford or PLUS loans through this academic school year and will require additional student loans for the next school year, it may be necessary to find another lender and complete a new Master Promissory Note if Peoples has not begun to participate again in the FFELP. Students can contact the Financial Aid Office at their school for a list of lenders that provide student loans and/or use the links below for the AES website to find another lender using AES to service their loans.

http://www.aessuccess.org/find_aid_for_school/lender_lists/stafford.shtml

http://www.aessuccess.org/