The Offices of Financial Aid at Quinnipiac University are pleased to provide you with a comprehensive set of standards that guide our offices and financial aid practices.
Memberships and Affiliations
Quinnipiac University has been a longtime member of the National Association of Student Financial Aid Administrators (NASFAA) and subscribes to that organization's Statement of Ethical Principals and Code of Conduct for Financial Aid Professionals. Our seasoned staff are longtime members of the Eastern Association of Student Financial Aid Administrators (EASFAA) and our institution belongs to the Connecticut Association of Professional Financial Aid Administrators (CAPFAA). The university has also adopted the Connecticut Code of Conduct and our office adheres to all of the standards and practices that are outlined in this document.
Connecticut Code of Conduct
On August 27, 2007, the Connecticut Attorney General announced that all Connecticut institutions of higher education had volunteered to adopt the Connecticut Code of Conduct which was designed to provide all Connecticut colleges and universities with a clear roadmap that relates to the ethical administration of financial aid. As a matter of fact, Quinnipiac University, one of 17 private colleges and universities in Connecticut, had worked closely with the Connecticut Conference of Independent Colleges (CCIC) in helping to draft this code with the Connecticut Attorney General's Office.
Student Loans and Suggested Lenders
For many students and parents, the college selection process is both new and challenging. Once you've decided on the college you will be attending, the next question that follows is, "How am I going to pay for this?" If you've read any of the recent articles published in the media, you may also be asking yourself, "Is my institution recommending loans with the best rates and fees available in today's market?"
While we have always provided a list of suggested lenders, it is important that students and parents understand that there are over 3,000 lenders that offer student loans. All of the lenders we recommend for our students are reputable, have demonstrated excellence in customer service and offer some of the most competitive loan products in today's market. We say this with the clear understanding that it is virtually impossible to promise the "absolute best" rates and fees given the ever changing student loan market. We hold our lenders to the highest standards and we continually monitor educational loan products to insure that our students and parents receive loans with competitive rates and fees.
With that being said, it is important to note that the ultimate choice is up to you. We encourage you to research your loan options and if you feel you have found a better lender or a better loan for your particular needs, let us know.
Finding the Right Loan
Type the word "student loans" in Google and your search will return over 27 million results. Finding the right loan is not an easy task and borrowing needs can vary depending upon your individual circumstances, previous borrowing history, the institution you are interested in attending and your course of study. All these factors make it difficult for any institution to recommend a "one size fits all" loan for its students.
Navigating through the loan process can be quite confusing given the tremendous amount of federal and private loan options available today. In order to help narrow down the thousands of choices to a handful that make the most sense, many college financial aid offices have conducted the research and offer a list of suggested lenders and loan products that are both competitive and time-tested. In considering loan products, there are many objective and subjective criteria an institution will weigh before recommending a particular loan. The information presented below outlines our process in determining how and why we suggest a particular lender or loan product. Should you ever have any questions or concerns about any loan, we strongly urge you to contact our office and we will be happy to explain your options.
How Quinnipiac University Selects a Lender
Quinnipiac University reviews its lender list annually and publishes a list of suggested lenders for the undergraduate, graduate and law school programs. A comprehensive list of suggested lenders and loans can be found on each of the respective university financial aid websites:
Undergraduate: www.quinnipiac.edu/x46.xml
Graduate: www.quinnipiac.edu/x124.xml
Law School: http://law.quinnipiac.edu/x62.xml
Each of our financial aid offices meet with a variety of lenders throughout the year in an effort to research all of the current loan products and benefits available to assure that our list of lenders and loans are competitive. In October/November we meet with our current lenders to discuss educational loans and we share our experiences, both good and bad. We also review the products being offered by other lenders in order to "set the bar" for the upcoming year. As long as a suggested lender continues to provide excellent service to our students, parents and our office AND they offer a loan product that remains competitive, they will continue to be a suggested lender for the upcoming year. Should a lender fall short of these criteria, we will consider other lenders who have presented competitive products.
Because continuity is very important, we always give our current lenders the first option to demonstrate the competitiveness of their loan products for the year. New lenders are only considered if there is a need to expand the current lender list or if the university feels the need to fill a vacancy created by the removal of a lender that fell short of our expectations. In December, we email selected lenders an RFI (request for information) in order to ascertain all of their products, benefits, rates, fees and processes, in writing. We have a committee that reviews all of the RFI's and we carefully select each lender and loan product to be placed on our "Suggested Lender List" for the following year. Lender selection is made with the utmost of care, with the best interests of our students and parents in mind and without pecuniary interests of the university or benefits provided to the university thereof.
Criteria We Measure When Reviewing a Lender
Listed below are criteria we consider when interviewing a lender to be placed on our list. The factors listed below are items which are equally important when considering a lender's qualifications:
- What are the terms, conditions, rates and fees on the loan and are they competitive?
Lenders will often meet or exceed the rates and fees set by the federal government in order to gain a competitive advantage. - Which lenders offer loan products that meet the needs of OUR students?
All student loans are not created equally. Needs vary between undergraduate and graduate students, dependent and independent students, parent and student borrowers or students with credit problems versus students with stellar credit. Borrowing needs can also vary depending upon a student's major in college, enrollment plans or their anticipated annual salary upon graduation. A "one-size fits all loan" simply doesn't exist and it's important that students weigh their loan options carefully before selecting a lender or loan. - Are the loan benefits being offered "real" or "perceived?"
Loan benefits typically come in two types: front-end and back-end. An example of a front-end benefit would include a lender paying all loan fees on a Federal Stafford loan. This type of benefit would be desirable for our students since 100% of all borrowers would benefit. An example of a back-end benefit would include a lender lowering the interest rate on a loan by a pre-determined percent after the student makes 48 on-time payments. Although the numbers of students who actually qualify for back-end benefits can be argued, most market studies reveal that only 10%-15% of students actually meet all of the conditions set forth in order to qualify for these types of benefits. Most back-end benefits are null and void if a student makes a late payment or decides to consolidate their loans after graduation. Consequently, back-end benefits can be more of a marketing tool rather than an actual benefit for our students so we always weigh loan benefits carefully. - We review subjective criteria such as a lender's reputation, experience and customer service. We also measure objective criteria such as a lenders longevity, default rate and processing systems.
All of these factors play an important role in assessing whether or not our students needs will be served well. - How does a lender process a loan from point of application through disbursement and is this process compatible with ours?
Most lenders have electronic processes that facilitate quick application turnaround while others have processes that can prolong disbursements upwards of 6 weeks. Most students rightfully demand a process that is both seamless and expeditious and it is equally important that a lender's process mesh well with our electronic systems in order for us to effectively meet the needs of our students and parents. - Is a lender's loan process fully electronic or is it an outdated, manual process?
Most lenders offer a full complement of electronic processes and others do not. Although federal regulations require an institution to process any loan a student presents, processing these loans in a timely fashion can often be difficult. Given the loan volume of the university and the demand for quick turnaround time from our families, we do consider "process" an important factor when selecting a lender. - What experiences have our students, parents and financial aid staff had with a particular lender's servicing department?
We are constantly monitoring the quality of a lender's customer service. Should a lender consistently demonstrate sub-par service, they are removed from our list. As in any business, the lack of exceptional customer service will eventually translate into loss in loan volume, so most lenders are very conscientious about providing exceptional customer service to students, parents and aid offices. - How responsive are lenders when a problem occurs?
No matter how exceptional a lender may be, problems inevitably occur. Exceptional customer service providers will act quickly, efficiently and professionally to resolve problems. This is a desirable quality in all of our lenders. - Does a lender service their own loans, contract with a servicer or sell their loans after origination?
Lenders whose sole purpose is to originate and sell their loans on the open market don't always have the student's best interests in mind. We like to know who will be holding and servicing the loan when it enters repayment, so we can be assured that our students will continue to receive exceptional service. For example, many of our lenders contract with or sell their student loans to Sallie Mae, an organization that is the largest servicer of student loans in the country. In our experience, Sallie Mae has provided exceptional service to our students and parents, and consequently, we have considered Sallie serviced loans to be a desirable feature for a lender.
It's Your Choice
Regardless of which lender you select for your loan needs, it is important to remember that the ultimate choice is yours! You have the right to select the education loan provider of your choice and you are not required to use any of the lender suggestions being provided. We strongly urge you to use our list as a basis for comparison should you elect to research lenders on your own. Students will not suffer any penalty from the University for choosing a lender outside of our list.
The lenders we've provided do offer some of the most competitive rates and fees available in today's market. However, if you feel that you have found a lender whose loan product will better suit your needs, please feel free to use them. Contact our office to inform us of your choice and we will be happy to process the loan for you. Although the university will never intentionally delay the processing of your loan or impose any penalty for utilizing a lender of your choice, it is important to note that we may not have processing arrangements with your lender and cannot attest to the efficiency, reliability or credibility of the lender you may have selected.
Our Commitment to Transparency
In an effort to assure that colleges and universities continue to make loan decisions that are beneficial to their students, both federal and state regulators are creating laws and codes that all colleges and universities are adopting which guarantee sound financial aid practices. Listed below are some of the codes to which we subscribe:
Connecticut Code of Conduct
NASFAA Code of Conduct
Listed below are some websites that will further facilitate your research in comparing lenders and loan products:
Private loans: http://www.finaid.org/loans/privatestudentloans.phtml
All loans: http://slbg.greentreegazette.com/gtree/
As always, please feel free to contact our office if we can provide you with any assistance!