- About EFC
|Preferred Lender List|
Modify Preferred Lender List Statute
+ The Higher Education Act of 1965 (HEA) requires post-secondary institutions to follow onerous procedures before they can provide information or guidance to students and parents on non-federal loan options. However, due to competing administrative needs, few postsecondary institutions have allocated the time and resources to complete the process.
+ Nonprofit and state-based student loan organizations offer loans utilizing state funding or tax-exempt bond financing, which in many cases enables the organizations to offer loans at lower costs than other programs. If schools do not create a Preferred Lender List, school personnel are restricted from advising students on non-federal loan options, including nonprofit and state-based student loans that are less costly than other programs.
+ Schools that do not create a Preferred Lender List are restricted from advising students on non-federal loan options. This impairs the ability of students and parents to analyze comprehensively the non-federal options available to them, which has the effect of driving them to higher cost loans and reducing access to state-based and nonprofit programs.