Federal Family Education Loan Program (FFELP) Lender Policy
MSU borrowers may select the FFELP lender of their choice. Student borrowers may select the Stafford Loan lender of their choice. Graduate borrowers may select the Graduate PLUS Loan lender of their choice. Parent borrowers may select the PLUS Loan lender of their choice. This means the borrower may use any lender that participates in the Federal Family Education Loan Programs. The borrower does not have to use a lender from MSU's Lender List.
The Department of Student Financial Aid encourages students to select a lender from our Lender List because these lenders have demonstrated the ability to quickly and accurately provide loan funds to MSU students with good customer service and with competitive fees and repayment benefits.
The Department of Student Financial Aid established a lender list based on lenders that are most frequently used by our students and who meet the below listed Lender List Criteria. This list includes a variety of national, regional and local lenders. We ask each lender on the list to annually update their loan related information and continue to maintain the below listed criteria to remain on the list.
Lender List Criteria:
- Lender participates in electronic processing through the ELM and NDN.
- Lender demonstrates the ability to accurately process student loans in a timely fashion
- Lender provides good customer service to our borrowers.
- Lender provides a representative who is accessible to our student loan administrators to resolve any loan issues for our students.
- Lender demonstrates the experience and financial stability to effectively participate in the Federal Family Education Loan Programs.
- Lender, to our knowledge, offers MSU borrowers the same or lesser fees and the same or more advantageous repayment benefits that they offer similar borrowers at other schools.
- Lender has a minimum of 50 in Federal Stafford loan volume in at least one of the two previous academic years. (Waived for any new lender for the first two years).
The FFEL Lender Review Committee must approve any new lender to the Lender List. The FFEL Lender Review Committee consists of the Associate Director for Student Loans, the Assistant Director within the Student Loan Office and the Director of Student Financial Aid. For any new lender to be considered for the Lender List, the lender must satisfy the above listed Lender List criteria (except the 50 minimum Stafford loan volume in at least one of the previous two years) and provide a written request to the Associate Director for Student Loans. In response to the written request, the Associate Director for Student Loans will send the lender a RFI form for the lender to complete and return. The FFEL Lender Review Committee will review the lender's request and information and decide whether or not to add the lender to the List. The Associate Director for Student Loans will inform the lender of the Committee's decision.
