Streamlined Electronic Loan Processing

For Federal Stafford, PLUS and Grad PLUS Loans

The Office of Scholarships and Financial Aid works with a number of major lenders to provide a streamlined electronic application process for Federal Stafford, PLUS and Grad PLUS Loans. If you are interested in participating in this streamlined process, we can electronically certify your loan eligibility with one of the following participating lenders. You will be able to complete their Master Promissory Note online. Students without Internet access can call 1-888-272-5543 and request their lender mail a pre-printed paper MPN to their address. Students must complete a MPN before funds can be disbursed. Funds will be disbursed via an electronic funds transfer from the lender to the student's account with the Student Finance Office.

Projected Change for 2010-2011  Academic Year

President Obama has proposed to a number of changes to federal student aid programs. One of the most controversial is his proposal to eliminate  the Federal Family Education Loan Program (where  private lenders originate federal student loans) and force all student loan volumn through the Federal Direct Loan Program.

 If this proposal is passed by Congress, this means that students who are currently borrowing under the FFELP Program would have to complete a new Master Promissory Note before any additional loan funds could be disbursed on their behalf.

As the President's proposal appears to have widespread support in Congress, we are developing plans to begin the transition starting in the 2010 spring semester. 

Participating Lenders for 2009-2010

Families are always free to utlize the lender of their choice. In light of President Obama's proposals, we have not done any additional research into adding new lenders to our current process.

Families who are interested in utilizing other lenders should check with their financial aid counselor  to see if we can incorporate them into out electronic arrangements to process loans.

We encourage families to visit each lender's web site to check on the benefits that they offer. These lenders have a record of providing excellent customer service to families, including during the historic "Katrina semester" (the 2005 fall semester).

We have not received any financial incentives from these lenders in exchange for highlighting them on this web site. Lenders are listed in random order that changes each time the page is loaded.

Law students major lender list

The list below includes lenders who will accept electronic loan transmissions from our office and who offer additional private loan programs. We have not received any financial incentives from these lenders in exchange for highlighting them on this web site. Lenders are listed in random order that changes each time the page is loaded.

 

Additional Lenders

We can now also electronically certify Federal Stafford and PLUS applications for the following additional lenders. These lenders have not provided any material compensation to Loyola University New Orleans as a condition for being added to this list. Unless you request another guarantor, these loans will be set up to guarantee through the Louisiana Office of Student Financial Assistance.

Stafford Lenders (and their lender codes for processing).

We have not received any financial incentives from these lenders in exchange for highlighting them on this web site. Lenders are listed in random order that changes each time the page is loaded.

PLUS Lenders:

Grad PLUS Lenders:

Important Considerations

One consequence of recent legislation is that most of the "back-end" borrower benefits that lenders have historically offered will no longer be availble IF they choose to sell their loans to the Department of Education.

We will assume that students who borrowed during the 2008-2009 academic year will continue to borrow from the same lender. Students who wish to change lenders must notify our office in writing (finaid@loyno.edu) .

  1. All students must return a Financial Aid Response Form and official "accept" the Stafford Loan as part of their financial aid package. This form gives permission to the Office of Scholarships and Financial Aid to electronically transmit application data to the student's lender. Students who are borrowing for the first time must also complete the Choosing Your Lender Form. We encourage all students who are completing online forms to sign on to LORA since this will provide additional security for your transmitted information. Forms are also available in the Forms and Publications section of our website

  2. Students who choose to use other Stafford lenders will need to submit their Master Promissory Note as well as a School Certification Form to our office. Loans from other lenders may be disbursed via an electronic funds transfer OR by paper check (depending on the lender). Please check with your lender so that you understand how and when you will receive the proceeds from your loan.

Right To Cancel

If you have a federal loan, you have the right to cancel the loan within a 30 day period. However, if you choose to cancel, the loan will be removed from your tuition account, and as a result, you may owe the university.

When You Graduate:

Students who have outstanding Stafford Loans must complete an Exit Interview during their final semester. The purpose of these sessions is to insure that students are fully aware of their options, rights and responsibilites as they enter repayment.

History

A Committee of Loyola University New Orleans administrators including the Provost , the Dean of Admissions and Enrollment Management and the Director of the Office of Scholarships and Financial Aid decided at the end of the 2000-2001 academic year to switch processing of federal student loans from the Direct Student Loan Program to the FFELP Program. The primary motivation for the switch was the superior level of borrower benefits offered to families through the FFELP Program.

As we are a small university with a small financial aid staff, we initially contacted several major lenders to see if they would be willing to work with us as we wanted to maximize our technological resources to provide an electronic application process for our families. As we have gained experience with the technology, we have expanded the number of lenders in the process. Learn more by reading about our Electronic Lender Criteria and Definitions.

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Updated August 2, 2009