While none
of the recommended lenders require student borrowers to apply with a
credit-worthy cosigner, all of them offer that choice. Applying with a credit-worthy cosigner often
will lower your Interest Rate significantly. If possible, we encourage you to take
advantage of this benefit.
Chapman University
evaluates lenders based on the following criteria:
- Telephone service to borrowers. Lenders must have toll free telephone numbers to provide counseling and
support. Preferably, telephonic communication will be available
during normal West Coast business hours (8:00 am to 5:00 pm Pacific Time).
- Borrower benefits. Lenders must be willing to provide reduction in interest rates, loan fees,
and/or loan principal.
- Written communications with
borrowers. Lenders must have good written communications about
their student loan products. The publications should encompass debt
management, lender contact information, loan terms and conditions, and
procedures for making payments, requesting deferments and forbearance.
- Compatible computer system. Lenders must possess an efficient administrative process that will assure
fast, effective, loan originations.
- Resolution of problems. Lenders must have in place a system that will promptly resolve any
difficulties that students or the university may have.
- Default prevention strategy.
Lenders must have a strategy for reducing student loan defaults.
- Web based services. Lenders must have a web address that will enable students to learn of the
status of their loans and the terms and conditions related to their
loans. Procedures for making loan payments and requesting loan
deferments and forbearance should be easily accessible. Students
should be able to print whatever forms they may need from the lender’s web
site.
- Electronic Funds Transfer. Lenders must be able electronically to transfer moneys from their accounts
to the university so that funds can be delivered to students quickly.
- Email. Lenders must have
an email address and be responsive to students who use this medium to
convey information and ask questions.
- Financial stability. Lenders must be in good financial condition as evidenced by their annual
financial reports.
- Sharing of borrower information. Lenders must not transfer information about their borrowers for any
purpose other than originating, servicing, or collecting the student
loan. If the lenders share information for these purposes, the
entity that receives the information also must agree to not to provide the
information to other interests for purposes other than management of the
student loan.
Recommended Lender Selection Procedure:
- Lenders will be asked to submit
proposals for inclusion on our recommended lender list. The
proposals should include information about how the lender meets the
criteria listed above.
- Designated staff will evaluate the
proposals. The lenders will be ranked in two general categories:
Administrative and Borrower Benefits. The borrower benefits ranking
will be determined by the amount of interest students must pay over the
life of the loan and access to special benefits such as graduated
repayment plans. The administrative ranking is determined by
evaluating all the other criteria.
- Designated staff will make recommendation
for the recommended lender list to the Director. The number of
recommended lenders will be at least three. The recommendation and
its rationale will be reviewed by the Director who may approve or modify
the recommended lender list.
- After the recommended lenders are
chosen, the listing will be posted and distributed to students.
NOTE: Students are free to choose lenders whom Chapman
University does not recommend; however, processing may be delayed if the lender
you choose uses computer systems incompatible with Chapman University’s
software. Also, the borrower benefits may not be as beneficial as those
offered by a recommended lender.
