Because lenders don't have to wait for a notice of guaranty from NSLP, they can quickly disburse loans to schools, and make same-day delivery of loan funds a routine event. Under the blanket guaranty process, schools and lenders do not need to wait for a notice of guaranty from NSLP before the loan is disbursed. Schools that currently send loan information to the lender can continue to do so. Once the lender receives the school's loan information, the lender disburses the loan based on the schedule provided by the school. The lender reports the loan to NSLP within 10 business days of the first disbursement, then NSLP immediately acknowledges receipt of the loan information from the lender.
Schools work directly with lenders to make pre-disbursement loan adjustments.
If there are changes to the loan before the first disbursement is made, the school reports them to the lender, who makes the adjustment and then disburses the loan. The lender reports the loan information to NSLP only after making the changes and disbursing the loan. Traditionally, the lender waits to disburse the loan until it receives a notice of guaranty following the guarantor's review of the school's loan certification data. Some guarantors perform more than 200 edits before issuing a notice of guaranty-mostly to identify minor data discrepancies. The notice of guaranty and the disbursement of the loan are delayed while the data discrepancies are resolved.