We would like to encourage you to process your student loans electronically. With many lenders, you will be able to do the Master Promissory Note on line with an electronic signature for both the Federal Stafford and Federal PLUS Loans, and do a promissory note with an electronic signature for the alternative loans. Once you have completed this step, the lender, or guarantor, that you have selected should notify Bard College electronically that a certification is requested. Bard College uses the ELM Network to receive these notifications, so please be sure that your lender is using this system as well. After the certification is submitted by Bard to the lender, your loan should be fully approved and notice of that approval given to Bard.
Keep in mind that you may select any available lender that provides the type of loan that you are using. Because of the multitude of lenders available, we ask you to follow up with your lender regarding the progress of your loan application, because otherwise Bard may never know the loan exists.
Guidelines for Selecting a Lender
There are many lenders that participate in the various loan programs that are available to students. These lenders may be banks, credit unions or simply student loan providers. Some have been in the student loan business longer than others and may be more adept at providing this service. Federal loan programs are regulated by the federal government, so many of the terms will be similar from lender to lender. Non-federal loan programs do not currently have that oversight and the terms may vary more.
There are a few important things to note as you search for a lender. Some lenders originate the loan and continue to service that loan for the life of the loan. Some lenders originate the loan and have a service provider take over the servicing of the loan. Some lenders originate the loan and then sell the loan to another lender or servicer. Obviously, if you are selecting a lender, you want to know if you will be dealing with that lender in the future or another organization. Loan servicers may be very experienced with the various loan programs and having your loan turned over to one of these servicers is not a problem. However, not knowing what organization may own your loan when you go into repayment could make your repayment more difficult than you expected. The service that you are provided as a borrower in the future may not seem important now, but it certainly will then.
Alternative loans may require more research into the terms that you will be given. Some of these loans have interest rates that will depend upon your credit rating or that of your cosigner. So please confirm the terms of the loan before you accept it. Most of these loans will be accruing interest while you are in school and this will be compounded with your principal at the point of repayment. Most of these loans will also require school certification.
If you are applying for a Stafford Loan, you should also complete the online Entrance Counseling as well (see below). Any questions or concerns should be addressed to the Office of Financial Aid.
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