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Choosing a Lender |
Continuing borrowers who had Chase, Citibank or Seaway Bank and Trust (formerly Seaway National Bank) as a lender this past year, or prior, please take note that none of these lenders will be funding loans for CSU students or parents for the 2008-2009 academic year. If you intend to take out a loan for the 2008-2009 academic year you will need to choose a new lender and submit a new Master Promissory Note (MPN) or PLUS Master Promissory Note (PMPN) to that lender.
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If you intend to take out one of the FFELP (Federal Family Education Loan Program) loans (Stafford, Parent PLUS and Graduate PLUS) you will need to choose a lender. The lender is an institution (bank, savings and loan, credit union, etc.) from which the money is actually borrowed and to whom you will be obligated to make payments once your loan goes into repayment. Interest rates and terms of FFELP loans are the same, regardless of the lender chosen, as these are determined by the U.S. Department of Education.
Even though the terms of all FFELP loans are the same, lender policies, practices, customer service hours, etc., may vary. In making a lender selection borrowers might want to make certain inquiries of a lender such as the following:
Will you charge me an origination fee to process my loan?
Who will be servicing my loan?
Do you sell your loans?
Do you offer repayment incentives?
What other repayment options do you offer?
What are your customer service hours?
The Illinois Student Assistance Commission (ISAC) has published "Choosing the Right Borrower Benefit Program" (.pdf) guidelines. All students considering taking out a loan should consult this publication before choosing a lender.
The Office of Student Financial Aid has compiled a list of lenders that we believe will provide excellent service to students who choose to use one of them to fund their FFELP loan(s). We refer to each of these lenders as a Preferred Lender. Please be informed that you are not required to use any of these lenders to fund your student loans. You may choose any lender you wish. All you need to do, when you are filling out either our Federal Stafford Loan Request Form, Federal Parent PLUS Loan Request Form, or Federal Graduate PLUS Loan Request Form, is to fill in the complete name of the lender and its six-digit lender code in the appropriate spaces on the form(s)
In the spring of 2008 the Office of Student Financial Aid, in preparation for the processing of loans for the 2008-2009 academic year, requested information from eight lenders concerning the service and benefits they would be able to provide to our students. We had originally anticipated selecting at least three lenders from the group, based upon their responses, and designating them as the Preferred Lenders at CSU for the 2008-2009 award year. Subsequent to our requests for information we were informed by three of the lenders that they would, due to their own financial considerations, no longer be funding loans for CSU students and parents or that they would be exiting the FFELP program altogether. Partly as a result of this development and our concerns for stability of lenders in the student loan industry we elected to designate all of the remaining five as our Preferred Lenders for the 2008-2009 academic year. We wanted to make sure that our students had an adequate selection of lenders as we moved into the 2008-2009 award year. Our decision was further influenced by the fact that all five Preferred Lenders participate in the electronic transfer of loan funds, offer economic savings incentives to students when they go into repayment, provide timely processing of loan certifications, are all well established in the student loan industry, provide, in are our best judgment, efficient customer service (to student and parent borrowers), and are economically stable as they are all large, or part of large, financial institutions and are likely to remain in the FFELP loan program for the entire 2008-2009 academic year. Three of the 2008-2009 Preferred Lenders appeared on our Preferred Lenders list for the past several years. One of the lenders appeared on the list in 2000-2001. The other is a newcomer to the CSU Preferred Lender list.
Remember, you have the right to select the lender of your choice without regard to the Preferred Lender list. Should you choose a lender, other than one of the Preferred Lenders, you must provide us with the complete name of the lender and its six-digit lender code on your loan application (Stafford, Parent PLUS and/or Graduate PLUS). Should you choose a lender who does not participate in electronic funds delivery please allow additional time for receipt of your loan proceeds by check.
The following lenders participate in the Federal Family Education Loan program and are the Preferred Lenders at CSU:
Bank of America
Lender Code: 802176
(800) 344-8382
www.bankofamerica.com/studentloans
The lender will charge a 1.0% origination fee.
This amount will be withheld from loan proceeds.
Bank of America does not sell its loans.
Please visit the lender's web site to review
other benefits/savings it offers to borrowers.
Please note such benefits/savings are subject to change.
This lender's guarantee agency of choice is
Great Lakes Higher Education Corporation
(800) 366-0032
www.mygreatlakes.org
The guarantee agency will charge a 1.0% default fee.
This amount will be withheld from loan proceeds.
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Chase
On Thursday, July 3, 2008, Chase informed Chicago State University that it had elected to cease funding all loans (Stafford, Parent PLUS, Graduate PLUS and alternative) for our students and parents.
Chase
Lender Code: 803000 (Note: new lender code)
(800) 487-4404
www.ChaseStudentLoans.com
The lender will charge a 1.0% origination fee.
This amount will be withheld from loan proceeds.
Chase has announced that it will be selling its
loans to the U.S. Department of Education.
Please visit the lender's web site to review
other benefits/savings it offers to borrowers.
Please note such benefits/savings are subject to change.
This lender's guarantee agency of choice is
American Student Assistance
(800) 999-9080
www.amsa.com
The guarantee agency will charge a 1.0% default fee.
This amount will be withheld from loan proceeds.
Please Note: If you were a Chase customer prior to spring 2008 at this university your Chase loans were serviced by Sallie Mae. Beginning with the spring 2008 semester Chase began providing servicing for all new loans. Sallie Mae no longer services new Chase loans for CSU student borrowers. What this means to you is that if you would prefer to continue to have all your student loans (those received during semesters previous to spring 2008 as well as all new loans beginning spring 2008) with one servicer you will need to choose a new lender that has servicing arrangements with Sallie Mae. You may choose one of the CSU Preferred Lenders that uses Sallie Mae or any other lender of your choice that has servicing arrangements with Sallie Mae. Should you choose a new lender please be informed that you will have to complete a new Master Promissory Note with that lender.
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Sallie Mae Education Trust
Lender Code: 802218
(888) 272-5543
www.salliemae.com
The lender will charge a 1.0% origination fee.
This amount will be withheld from loan proceeds
.
Sallie Mae Education Trust does not sell its loans.
Please visit the lender's web site to review
other benefits/savings it offers to borrowers.
Please note such benefits/savings are subject to change.
This lender's guarantee agency of choice is
United Student Aid Funds
(888) 272-5543
www.usafunds.org
The guarantee agency will charge a 1.0% default fee.
This amount will be withheld from loan proceeds.
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Wachovia Education Finance
Lender Code: 830005
(800) 338-2243
www.wachovia.com/education
The lender will charge a 1.0% origination fee.
This amount will be withheld from loan proceeds.
Wachovia Education Finance does not sell its loans.
Please visit the lender's web site to review
other benefits/savings it offers to borrowers.
Please note such benefits/savings are subject to change.
This lender's guarantee agency of choice is
Texas Guarantee Student Loan Corporation
(800) 845-6267
www.tgslc.org
The guarantee agency will charge a 1.0% default fee, but this fee
is paid on behalf of the student by the guarantee agency.
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Wells Fargo Education Financial Services
Lender Code: 807176
(800) 658-3567
www.wellsfargo.com/student
The lender will charge a 1.0% origination fee.
This amount will be withheld from loan proceeds.
Wells Fargo Education Financial Services does not sell its loans.
Please visit the lender's web site to review
other benefits/savings it offers to borrowers.
Please note such benefits/savings are subject to change.
This lender's guarantee agency of choice is
Texas Guarantee Student Loan Corporation
(800) 845-6267
www.tgslc.org
The guarantee agency will charge a 1.0% default fee, but this fee
is paid on behalf of the student by the guarantee agency.
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The origination fee and default fee referred to in each Preferred Lender section above relates to Federal Stafford Loans only.
FEES FOR PARENT PLUS AND GRADUATE PLUS LOANS
All lenders charge a 3% origination fee on PLUS Loans.
All guarantee agencies charge a 1% default fee on PLUS Loans. |
Please Note: CSU does not participate in the United States Department of Education's William D. Ford Federal Direct Loan Program (Direct Loans).
All information given above, and elsewhere on this web site, regarding lenders, guarantee agencies, fees, etc. is subject to change based upon changes in federal, state, CSU, lender, or guarantee agency law/regulations/policies. In the event that there is a change we will update this web site immediately upon being informed of such an occurrence.
If you have had a prior loan you may want to stay with the same lender. Cross-borrowing (i.e., changing lenders) usually requires paying off multiple lenders/loans at the same time, thus increasing the amount you may need to pay on a monthly basis.
If you do not indicate a lender on your loan application, and you have previously had a loan at CSU, we will assign the same lender to your current loan (if that lender has not exited the FFELP program). If you are a first time borrower at CSU (or your lender is no longer funding FFELP loans) and you do not indicate a lender on your loan application, we will choose one for you from the Preferred Lender list.
Just as you have the right to select the lender of your choice you may select the guarantee agency of your choice. The Preferred Lenders have established relationships with the guarantee agencies listed above, but most of the Preferred Lenders also have relationships with other guarantee agencies. Should you desire to have your loan submitted for guarantee to another guarantee agency please indicate this in the space provided on the Loan Request Form (Stafford, Parent PLUS or Graduate PLUS). Should you choose a lender other than one of the Preferred Lenders we will choose a guarantee agency for you unless you indicate a preference on the aforementioned Loan Request Form.
Once your the loan(s) has been processed and guaranteed your lender, if it is one of the lenders on CSU’s Preferred Lender list, will send you a Master Promissory Note (MPN) if you are applying for a Stafford Loan, or a PLUS Application and Master Promissory Note (PMPN) if you are applying for either a Parent PLUS or Graduate PLUS loan, which you must complete and return to that lender, if you have not previously done so. PLEASE, DO NOT RETURN THE MPN or PMPN TO THE OFFICE OF STUDENT FINANCIAL AID. If you choose a lender other than one of those listed on the Preferred Lender list you are responsible for securing a MPN or PMPN from that lender. You may, with many lenders, be able to complete the MPN or PMPN on-line. Please consult your lender's web site or give them a call for information/instructions if you would like to complete your MPN or PMPN on-line.
Some lending institutions may make direct solicitation (both by mail and telephone) to students and parents to encourage them to select them as a lender. Please be cautious in dealing with such lenders. Never give your Social Security Number or other personal information to any lender without first conducting an investigation as to that lender's business practices. lf you have any concerns about a direct solicitation you receive please visit the web site of the U.S. Department of Education Office of Inspector General.
Private Education Loans (Alternative Education Loans)
There may be instances where you may not qualify for FFELP loans or it may be that you are not be eligible for sufficient funding of your needs under these federal programs. If that is the case you might wish to pursue a private education loan. In most instances lenders will notify our office if you have been approved for a private loan and request that we certify your eligibility. In some instances you may need to either notify us that you have been approved or you may need to provide us with a paper certification form. For more information concerning this process check with your lender. We will perform eligibility certification for any lender or loan product you desire. CSU does not maintain a Preferred Lender list for entities that offer Private Education Loans nor do we recommend any particular private lender or private loan product. |
Continuing borrowers who had Chase, Citibank or Seaway Bank and Trust (formerly Seaway National Bank) as a lender this past year, or prior, please take note that none of these lenders will be funding loans for CSU students or parents for the 2008-2009 academic year. If you intend to take out a loan for the 2008-2009 academic year you will need to choose a new lender and submit a new Master Promissory Note (MPN) or PLUS Master Promissory Note (PMPN) to that lender. |
