Federal Stafford Loan How UAlbany selects Lenders For Your Consideration The performance of lenders presented for your consideration is evaluated each academic year.  This evaluation is conducted by our experienced loan team and is based on a variety of criteria.  As a result, the lenders presented for your consideration may change from year to year as new lenders are judged to be superior in terms of borrower benefits, customer service and technology.  If lenders are not performing, our students and parents make sure we know about it.  Student and parents can be assured that the lenders who make the list have earned the designation through superior service for our students, families and the University.   The University prioritizes the requirements in the evaluation process in the order listed below: All lenders for your consideration must meet the following requirements: Lender Service and Operational Standards: Students at the University at Albany expect and should receive quick, efficient, and accurate processing of student loans.  Student borrowers want a simplified loan process that relies on the Internet as they have become accustomed to doing business with a “click” of the mouse.  Waiting in line is unacceptable.  From both a borrower and a school perspective, it is essential that a lender possess state of the art operations including 24/7 access to loan information online and/or 24/7 call center availability.  Lenders must easily interface with PeopleSoft and HESC electronic processes as well as be a full participant of Commonline 4.  This would include changes, hold/release, and returns.  Lenders must process EFT through HESC express or HESC escrow, as well as process and update loan transactions in real-time.  They must also work with the HESC guarantee agency in the electronic Master Promissory Note Process.  Lenders must participate in the HESC PLUS loan credit check process.  Assignment of a service or marketing representative dedicated to UAlbany is an expectation of these lenders.  Timely and responsive processing with excellent problem resolution service within 24 hours is essential.  A toll free number for borrower information and participation in both Federal Stafford and PLUS loan programs is required.  Lenders must have a school focused support process.  Call Centers should be familiar with University at Albany procedures for Stafford, PLUS and alternative loans. Lenders must exhibit the maximum level of participation in HESC processes and processes related to Commonline 4 changes. Borrower Benefits: Lenders must have competitive rates and repayment benefits must mirror industry standards.  To ensure that our borrowers receive the most competitive repayments, high priority will be given to lenders that provide above-average repayment benefits to student and parent borrowers.  Borrower benefits are listed on our website at www.albany.edu/financialaid.  High value loan services must be offered by selected lenders. “Value” isn’t always just about price, although our list usually contains several of the lowest-cost providers.  Value might include added services like incentives for on-time payments, opportunity to defer payments until graduation and immediate interest rate reductions.  This allows the student and/or parent(s) to determine which combination of discounts and benefits is best for their individual situation. Lender Stability: Lenders must be divisions/affiliates of federally-insured banks, federally-insured savings banks, credits unions, other established financial services companies or contract with loan servicers that have been actively engaged in the student loan industry for at least 5 years.  This helps ensure that the lender will still be there for students and/or parents when they need a loan in future years such as for graduate school. Reputation: Lenders must have a proven record of superior customer service in dealing with our students and parents.  This includes offering a variety of payment options (including auto-debit and web-payment), while maintaining trained staff to answer questions via a toll free number, including evenings and weekends.  We want to ensure that students and parents get the same great service from the student loan lender that they would get from us! Flexibility: The Office of Financial Aid constantly re-examines our business processes in search of improving student service and efficiency.  We expect lenders whom we present for your consideration to be flexible; to respond quickly; to accommodate changes or provide information that we may require as we change our business practices to incease service efficiency. Default Management: It is important for lenders to provide web-based default management tools and early intervention for borrowers who are delinquent on their loan payments.  Lenders whom we present for your consideration provide payment and repayment calculators, consolidation information, planning/budgeting, and credit information to students and parents.  They also provide information to borrowers about costs of deferment/forbearance.  Lenders should also provide financial literacy programs including budgeting and credit management.  Commitment to debt management and default aversion provide services to our students through cooperative efforts with the University.  These services include numerous activities such as providing websites to educate students on financial issues, offering debt management tools, and offering credit management programs.  Responsible lenders want to help our students become responsible, credit-worthy consumers in the future. Other: An expectation exists that there will be no direct solicitation of our students especially as it relates to debt consolidation without a written consent form and partnership with the Financial Aid Office.  Consideration will be given to the record of service, reputation, operational standards and time in business for each lender and their servicer. Alternative Loans: If loans are not offered by the lender, the lending partner must be disclosed.  Ability to certify loans through Scholarnet and have funds sent to the school through HESC escrow is required.  All credit criteria, terms and standards must be disclosed to the student and the Financial Aid Office.