The US Federal Government
The US
Federal Government plays a key role with regard to education lending
throughout the Federal Family Education Loan Programme (FFELP). The
Federal Government guarantees the loans made by lenders in case of
default.
The student is the person who borrows the money under the Federal Family Education Loan Programme (FFELP) guidelines.
The
International Student Advisor at Abertay University works with you
and/or your parents to determine eligibility based on federal
guidelines for different types of financial aid such as scholarships,
loans and more. The International Student Advisor also certifies or
approves your federal loan application and the amount you can borrow.
The guarantee agency
The
guarantee agency will verify your eligibility for a particular federal
loan programme and will provide insurance for those loans. However, if
you do not repay your loan when requested, the guarantee agency will
pay the lender with funds received from the Federal Government on your
behalf and then collect the balance directly from you.
The lender
The lender is who
actually provides the funds. The lender may be in the form of a bank
or other financial institution. The lender will send the money
directly to the University who will then deduct any monies due on your
student account for example tuition fees and or accommodation fees. Any additional money will be returned to you. Please note that the
lender may sell your loan onto another lender. If this happens, you
will be contacted by the original and new lender.
The School/University
The servicer
The servicer is a
company contracted by the lender to deal with all loan administration
and communication for example collection of payments, correspondence
with borrowers, address changes, loan status updates and more. Therefore it is important that you know your servicer’s contact
details.
