We have found each of these lenders to provide prompt reconciliation of loan issues. They also provide fast electronic payment of loan funds directly to your university billing account, and offer a variety of savings programs during loan repayment. See the lender comparison chart below. The originator is responsible for processing loan applications. A servicer is a company contracted by a lender to perform administrative tasks such as disbursing funds and processing deferments.
Lenders often sell loans to a servicer who handles collections once the loan is in repayment.
The Federal Stafford Loan application process has changed beginning with the 2000-01 academic year. The former Application and Promissory Note for Federal Stafford Loans has been replaced by the Federal Stafford Loan Master Promissory Note . While most of the information required is the same, note that the Master Promissory Note does not ask for a loan amount or loan period. This is because it is designed to serve as a promissory note for both current and future Stafford borrowing. This means that you will no longer need to complete a formal loan application each year, or each time your Stafford eligibility increases.