Electronic Lender Criteria and Policies

NOTE:  We anticipate that the Congress will passlegislation which mandates that all students borrow through the Federal Direct Loan Program  starting with the 2010-2011 academic year.  We are preparing for this transition and will be notifying  current borrowers of the steps that they will need to take to receive a loan for the 2010-2011 academic year.

Lender Criteria:

We have tried to identify and establish electronic relationships with lenders who meet the following criteria:

  • Offer a competitive package of borrower benefits. Please note that many lenders, as a result of current conditions in the economy, have " temporarily suspended" virtually all of their borrower benefit programs.
  • Offer a significant level of customer service including online options and "call centers" for our families who are not comfortable working online. We also looked looked at the lenders' ability to offer Spanish language support to address the needs of our Hispanic community.
  • Offer robust repayment options and pro-actively work with borrowers throughout the life of the loan.
  • Are well-known, established companies with a focus on student loans. There are a massive number of lenders who offer loans through the FFELP Program.
    • We wanted to refer families to reputable companies that had a history of treating borrowers appropriately.
    • Many of our undergraduate students will pursue graduate and professional degrees at other institutions. We wanted to initially focus on lenders that students could use throughout their studies.

Updated Lender Policies:

Due to the changes implemented by the College Cost Reduction and Access Act ("CCRAA"), many lenders have not finalized program details for the 2009-2010 academic year OR have indicated that the benefits listed are subject to change. PLEASE CHECK THE LENDERS' WEB SITES FOR POSSIBLE UPDATES BEFORE MAKING A FINAL DECISION.

All Stafford Loans disbursed after July 1, 2008 are subject to a 1% loan origination fee and a 1% federal default fee.

Guaranty Agency Policies:

Our computer programs will automatically use "LOSFA" as the guarantor for most FFELP loans for undergraduates. Families who would like to utilize another guarantor should contact our office and request a manual change to the guarantor of their choice.

NOTE:

We have been notified that Capitol One will be withdrawing from the Federal Student Loan Program effevtive April 1, 2008.

 

 

Updated October 6, 2009