UNCW primary selection criteria for 2008-09 preferred lender list included overall cost to student loan borrower, lenders ability to work with preferred guarantor and benefits associated with that guarantor and anticipation of setup within UNCW Banner system.

Lenders replied to RFI in January 2008.  To determine overall cost to student loan borrowers, all replies were scrutinized and revised as necessary to ensure all began with same starting interest rate (6.0% for 08-09).  Any lender responses that were submitted using a starting interest rate of 6.8% were revised to reflect 6.0%.  Any available borrower benefits or incentives were taken from this starting rate.

Consideration was given to the likelihood that a particular benefit would be utilized.  If the benefit required substantial intervention from the borrower to be maintained, it was given lower priority than a benefit that was automatic or required only minimal borrower action.  Preference was also given to any benefits that could be rehabilitated or reinstated through action on behalf of the borrower if lost for any reason.  This allows our students to have the ability to regain a benefit if a payment is late for any reason.

UNCW has made the decision to utilize ECMC and the CFI Guarantor as primary contacts.  If the lender’s benefits were only available using another guarantor, less preference was given to this lender.  This is a processing decision on the part of UNCW as we begin the FFELP process.  This is subject for review in future years and will continue to be evaluated as will the overall lender selection process.

The Financial Aid Office will process FFELP loans for a borrower through a lender not included on our preferred list if requested by the student (or parent if appropriate).  UNCW staff will contact the lender in question to set up system preferences should this arise.