FINANCIAL AID OFFICE
STUDENT LOAN PROGRAMS
Lender Selection Process for the Federal and Alternative Loan Programs
Student and parent borrowers of the Stafford Loan, PLUS Loan, and/or Grad PLUS Loan may choose any lending institution that participates in the Federal Family Education Loan Program (FFELP). The basic terms of the loans (origination and default fees, fixed or capped interest rates, and deferment options) are set by the federal government.
Student borrowers of the Alternative Loan may choose any lending institution of the private education loan market. The basic terms of the Alternative Loans (origination/repayment fees and interest rates) are determined by the lender based on the borrower’s credit history and market rates (Prime or LIBOR).
LMU Financial Aid Office requests information from members of the student lending community on the FFELP and Alternative Loan Programs through our Request for Proposal (RFP) process. We do a complete assessment of our lender’s responses and seek optimal loan pricing, product and service, and process and technology for our student and parent loan borrowers. To make your selection process easier, we have identified lenders on our preferred list that have the most outstanding borrower benefits and customer service. The following factors were considered in the selection of our lender partners and we recommend our borrowers to review the following factors when comparing lenders:
• Pricing – Our recommended lenders offer the most competitive borrower benefits such as no origination fees on Stafford Loans, interest rate reductions for borrowers who sign up for electronic repayment, and principal and additional interest rate reductions for making consecutive on-time payments.
• Service – Our recommended lenders provide user friendly custom websites to assist our borrowers with information and applications on loan programs available 24 hours a day. For faster service, online loan applications can be completed with an electronic signature with the lenders. Dedicated customer service representatives can assist borrowers to make an informed decision and assist with applying over the phone. We have also taken into consideration feedback from our borrowers regarding expectation and level of service they receive. If a particular lender generates complaints, we will strongly consider removing them from our list.
• Process and Technology – Our recommended lenders work with LMU’s own system to process, receive and return loan funds using Electronic Funds Transfer (EFT). This helps create timely disbursements into the student’s account quickly and avoid confusion with manual processing and delays of paper loan checks. Our lender’s website provide our borrowers convenience to electronically sign promissory notes, download deferment and forbearance forms, track loan history, make payments, and update personal information.
LMU Student Loan Programs Unit will approve loans with any lender or credit union of your choice if eligible. We encourage you to compare different lenders so you may make an informed choice on cost saving benefits when borrowing and repaying the loan. Our list of recommended lenders is reviewed and updated every one to two years.
LMU Financial Aid Office does not receive and does not accept inducements from lenders in exchange for a partnership on our preferred lender list. We do not share in profits from student loans. We have signed and adhere to the Statement of Ethical Principals and Code of Conduct as published by the National Association of Student Financial Aid Administrators (NASFAA) and as disclosed on our website.
Your feedback on our recommended lender list is welcomed! You may send us an email at finaid@lmu.edu or contact us at (310) 338-2753. Our office is located at 1 LMU Drive, Xavier Hall Suite 200, Los Angeles, CA 90045.
Remember to always borrow conservatively and wisely!
Thomas D. Le
Assistant Director of Financial Aid,
Student Loan Programs
TYPES OF LOANS AND OTHER LOAN RELATED INFORMATION AND LINKS
Undergraduate Loans:
Federal Stafford Loan
Federal Parent Loan (PLUS)
Alternative Loan
Federal Perkins Loan
Related Information:
APLE Program
Default
Deferments and Forbearance
Federal Stafford Entrance Counseling
Exit Counseling
Financial Aid Ombudsman
Loan Calculators
Loan Consolidation
Loan Forgiveness
Managing your Credit Card
National Student Loan Data System (NSLDS)
Perkins Entrance Counseling