The University of Arizona participates in the Federal Direct Loan program and has removed all private lenders from our Stafford, Grad PLUS and Parent PLUS loan process.
This information is provided to clarify polices regarding our electronic loan providers listings for private education loans.
Right to select a lender of your choice
Every student or parent has the right to select any lender that is approved by the U.S. Department of Education. For your convenience, the UA maintains a list of lenders who have provided loans to UA students and parents in the past and have compatible interface computer systems with UA.
Right to cancel or reduce a loan.
Every parent or student borrower has the right to cancel or reduce a loan. Even after the loan has been disbursed, you can cancel or reduce your loan if done so in a timely manner.
How is the lender list determined?
Lenders who have produced a sufficient number of loans are placed on our convenience list. Typically this is about 50 loans per academic year (or about $300,000). In fact, if we fail to accommodate students’ and parents’ lender choices our system will punish us with manual loan certifications.
We reserve the right to add a lender if we consider the discounts being offered to be especially beneficial to our students. The University does not receive any compensation from any lender for inclusion on the list, or for loans taken out by UA students.
How is a lender's position on the list determined?
The order of lenders on the list is based on the lender's discounts factored by what we determine to be a reasonable utilization rate for each discount. A utilization rate is the rate at which borrowers are likely to obtain and keep the discount.
How are the loans processed?
UA has elected to use the Electronic Loan Management (ELM) agency and the National Disbursement Net (NDN) as the loan delivery agents for all our federal student loans. We believe that this is the best way to ensure that UA is not dependent on any guarantor or lender for the critical loan processing functions. We believe this to be the most flexible and open system that results in our ability to electronically interface with lenders who offer the best discounts. Both Elm and NDN use a common computer format called common line which is available to every lender and guarantor.
How do we determine which lenders can use Electronic Funds Transfer (EFT) to UA?
Any U.S. Dept of Education certified lender using ELM/NDN can send UA funds via EFT. Lenders who do not use ELM/ NDN can always send UA funds via paper checks.
How do we obtain information about the lenders?
The OSFA sends a Request For Information (RFI) packet to each lender for whom we have indicated loan terms once a year. The RFI is formatted to obtain the information from each lender so as to result in a straightforward comparison for our students.
Does the UA receive compensation for a lender being added to the list?
The University and its employees do not receive any compensation from any lender for inclusion on the list, or for loans taken out by UA students. The UA does not allow employees in the OSFA to be a paid consultant for any student loan lender.
The University is a lender for Graduate and Professional students.
The University of Arizona remains a lender under provisions of the Higher Education Act. However, due to current financial market conditions UA has suspended active participation in federal student loan program as a lender.