James A. Rhodes State College
Preferred Lender List
The Rhodes State College Office of Financial Aid is pleased to announce our Preferred Lender List for FFELP Stafford and PLUS loan programs for the 2008-2009 aid year. The following six lenders make up the 2008-2009 Preferred Lender List (not in order by any preference):
- National City
- US Bank
- Fifth Third
- Charter One
- PNC Bank
- Edamerica
Selection process for the 2008-2009 Preferred Lender List:
Recent federal legislation and other initiatives have caused many changes in the FFELP loan industry to date. Current federal requirement is that a school (if constructing a lender list) must have at least 3 non-affiliated lenders on a lender list. The Rhodes State College Office of Financial Aid has decided to double this requirement and offer six non-affiliated lenders as a “Preferred” Lender List. To determine the make-up of our 2008-2009 Preferred Lender List, we decided to form a Lender List Committee with a sole purpose of providing non-biased input into the lender review process. This was an experimental process and will be reviewed for future lender list reviews.
The Lender List Committee was composed of representatives from the Business Office, Admissions, Financial Aid and the Business and Public Services academic division. A request for information (RFI) was sent via e-mail to lender representatives that made contact with the school, and a link was also posted on the Rhodes State College Financial Aid website so that any lender was able to access our RFI, print the questionnaire, and submit a response by the 5:00 P.M. January 31st, 2008 deadline. All committee members received full copies of lender RFI’s and were instructed to thoroughly evaluate each lender based on topics such as borrower benefits, normal business practices, working relationships with the Rhodes State College preferred guarantor Great Lakes, etc.
We received thirteen RFI responses from lenders requesting consideration for the 2008-2009 Preferred Lender List. Upon reviewing all of the RFI responses that were received by the requested submission date (only lenders who submitted an RFI response by the deadline and are currently participating in originating FFELP loan programs were considered), a consensus decision was reached on a list of six lenders. The Lender List Committee selected the above six lenders based on the following discussion:
- The committee strongly felt that a lender offering 0% origination fees on Stafford loans was the most important benefit to our students. 0% origination fees will allow students to receive their maximum FFELP Stafford eligibility and will ensure that their total Stafford eligibility will be maximized when the funding is applied toward tuition, fees, etc. The Committee felt that 0% fees was the most important factor in deciding on our 2008-2009 Preferred Lender List since most lenders have had to significantly scale back on borrower benefits.
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It was also a consensus that based on the submitted RFI responses, the 6 lenders that were selected would offer a stable, reliable financing option to students and their families. Each lender exhibits a strong focus in putting the needs of students and their families first by offering quality products and services.
Because all lenders offer quality products and services, it was extremely difficult to select a lender list for the 2008-2009 aid year. We do feel, however, that our 2008-2009 Preferred Lender List will be more than sufficient to meet the needs of our student population.
Please note, that even though Rhodes State College has a “Preferred” Lender List, we will not prohibit a student from using a lender of their choice. Students will have the capability to write in a lender of their choice on all paper forms, and have the capability to type in their own lender code when completing a Master Promissory Note online through FASTLoans™. Returning students will be able to continue to use a currently active Master Promissory Note with their current lender if they so choose, even if that lender is not on the Preferred Lender List. The Financial Aid Office will also continue to certify any FFELP loan program applications received via standard mail or fax, regardless of lender or guarantor/servicer. The Financial Aid Office does request, however, that when students and their families choose to use a lender not on the Preferred Lender List, that the students and/or their families directly contact the lender of their choice to receive the most current borrower benefit and fee information. Borrower benefits are subject to change at any time per a lender’s discretion.
5/1/2008 Lender list update
As of May 1st, 2008, the Rhodes State College Office of Financial Aid has learned that 3 of our 6 preferred lenders will be charging an origination fee on Stafford loans. The lenders that will be charging a fee are:
- Fifth Third (lender code 808780)
- Edamerica (lender code 834060)
- US Bank (lender code 816086)
As stated above in the lender list selection policy, one of the primary criteria for lenders on our preferred lenders list here at Rhodes State was to select lenders who were willing and able to offer zero origination fees. The current conditions of the credit market in the United States, etc., have had a direct impact on most Federal Family Education Loan Program (FFELP) lenders, and as a result they have been forced to review and revise their borrower benefits on a constant basis for Stafford and PLUS loans. Because of these market conditions that have affected and will continue to affect the student lending industry, the Rhodes State College Office of Financial Aid will keep its current preferred lender list intact and will not be making any changes to this list (despite the previous requirement of zero origination fees). The quality of the lenders on our list remains exceptional, and despite charging an origination fee, these lenders will continue to offer great customer service to the Rhodes State College student population. Without keeping our current lender list intact, any attempt to reduce the size of our lender list (or to replace lenders altogether) could greatly hinder our ability to find participating lenders and offer quality loan options to our student population and their families in this time of industry instability.
It is a strong reminder as well that a student is in no way, shape or form is obligated to borrow from a lender on our 2008-2009 preferred lender list. You may use any FFELP loan lender that is willing to make a Stafford or PLUS loan to Rhodes State College. We do request that students check with their lender of choice to follow up on their current borrower benefits. You may view the online lender list for current borrower benefit information for all 6 of the Rhodes State College 2008-2009 preferred lenders, and you may also contact each lender directly for updated benefit information at any time. Lenders are able to change their benefit information at any given time per their own discretion. Contact Financial Aid via email or at (419) 995-8159 with any questions.