Education Loans and Preferred Lenders
Like many other institutions of higher education, West Chester University utilizes preferred lender lists. We believe they serve to assist families in the challenging task of choosing banks or lenders that best meet their education loan needs. The list of preferred lenders below was carefully chosen after a 4-month process of research, evaluation and determination. The WCU Financial Aid Office sent Requests for Information (RFIs) to our top 50 lenders (by volume) in December of 2007. The West Chester University RFI, modeled with guidance from the National Association of Student Financial Aid Administrators (NASFAA) monograph on choosing preferred lenders, focused on the following major criteria: A. Federal Family Education Loan Programs (FFELP) 1. competitive loan pricing 2. borrower benefits 3. lowest possible fees 4. a successful track-record with loan servicing 5. excellent and innovative customer service, where customer satisfaction is the company’s top priority 6. timely disbursement of funds 7. straight-forward and customer-friendly on-line borrower account information 8. lender stability and on-going commitment to borrowers B. Alternative Education Loans 1. interest rates (Prime vs. Libor) and credit-tier-based vs. non-credittier-based pricing 2. fees (both origination and repayment) 3. loan availability and costs to students borrowing with and without co-signers 4. loan availability for students enrolled less-than-half-time and those not making satisfactory academic progress 5. customer service and borrower on-line access 6. lenders’ marketing practices, particularly with respect to the more expensive, non-school certified Direct-to-Consumer loans 7. lender stability and ongoing commitment to borrowers
Results Of the 50 RFIs sent to lenders, 10 were returned to the University. A committee, comprised of an Assistant Financial Aid Director and two loan coordinators, analyzed each lender’s products, both for FFELP and alternative loan programs. Each lender’s website was visited and scrutinized for student loan content and how loans are marketed. Comparison charts and worksheets were developed to facilitate the analysis. Once the committee made its findings, the committee chair presented the results to the Financial Aid Director, Associate Director and Assistant Directors for discussion and questions. Final determinations were made at that time and lenders were notified of the results. Although our preferred lender lists have been determined, it must be noted that continued analysis and daily review has been ongoing due to the following: 1. Changes in federal legislation governing the loan programs 2. Lenders changing their loan fee structures and benefits due to the country’s current economic climate 3. Lenders no longer participating in either federal or alternative loan programs Students and parents are free to choose any lender and or guarantor they wish to use for education loans. Based on our research, we feel the following lenders best benefit our students and families at West Chester University:
Stafford and PLUS Preferred Lenders Chase Citibank Citizens Bank EdAmerica National City PNC Bank SunTrust Wachovia Alternative Loan Preferred Lenders Chase Citibank PNC Bank HESAA (New Jersey CLASS loan for NJ residents only