Why does Lycoming have "Suggested" Lenders?

While there are dozens of student loan lenders offering hundreds of different products, features, benefits, and incentives; we know that many student/parent borrowers do not have the time or resources to research all of the available options.

Lycoming College closely monitors the performance of all our student loan lenders to ensure the highest quality of service for our students and their families.  Our "suggested" lenders have demonstrated a commitment to providing the very best in customer service, technology, and quick loan processing.  They have worked collaboratively with the higher education community to continuously improve and expand the services they provide to students and families, and to keep borrowing costs as low as possible.  They provide Lycoming detailed information about their products and services so we can give you a side-by-side comparison of interest rates, fees, features, and benefits.  They have worked with Lycoming and AES (the designated guarantor in Pennsylvania for the Stafford/PLUS loan) to ensure that the student loan process is as smooth and efficient as possible for you, the borrower

Am I obligated to use one of the "suggested" lenders?

No.  You are always free to choose among the hundreds of lenders who provide student loans.  Please be aware that some smaller banks, credit unions, and "start up" lenders do not participate in the electronic process used at Lycoming or they may not use AES as their guarantor.  Selection of a lender who does not use AES as the guarantor will significantly slow the processing of your student loans throughout your time at Lycoming.  This is the not the result of any policies or procedures at the college; it is the reality of some lenders not notifiying the school that you have applied for a loan.  Lenders that use AES as the Guarantor 

Also, if you have existing student loans, we strongly encourage you to stay with the same lender (or service provider) for future student loans.  This will prevent the receipt of multiple bills every month.  If you have an existing banking relationship (checking, savings, etc), you should compare your bank's student loan offerings to those of the suggested lenders and make the choice that is best for you.  Remember that most banks use third-party servicers (they sell their loans and benefits may not be maintained) to collect payments, so you will probably not be able to make monthly payments at your local bank branch.

How does Lycoming determine which lenders are "suggested" lenders?

We judge the performance of our lenders on numerous factors each academic year. This is why the list changes slighlty from year-to-year.  There are many lenders that provide good services without making our suggested list, but you can be sure that the lenders who make the list have earned the designation through superior performance in serving you - our students and families.

Our suggested lenders:

1.  Have a history of great customer service in dealing with our students and parents.  This includes offering a variety of payment options (auto-debit, post-disbursement forbearance on PLUS, underwriting the 1% origination fee for Stafford Loans, etc.), while maintaining trained staff to answer questions via a toll-free telephone number (including evening and weekends).  We want to ensure that you get the same great service from your student loan lender that you get from Lyco.

2.  Are divisions/affiliates of federally-insured banks, federally-insured savings banks, federal credit unions, or other established financial service companies that have been actively engaged in the student loan industry for at least five year.  This helps to ensure that the lender you choose will still be there for you when you need a loan in future years, or for graduate school.

3.  Offer good value across the board in the loan services they offer.  "Value" isn't always just about price.  Value might include added services like incentives for on-time payments, interest rate reducation for auto-debit, underwriting the 1% origination fee on Stafford Loans, or opportunities to defer payments until graduation.  We give you this pricing information as part of our "suggested lenders" lists, so you can determine which combination of discounts/benefits is best for your situation. 

4.  Often provides "value added" services to our students.  This includes providing useful websites to educate students on financial issues, offering debt management tools and programs, and offering credit management/credit card education programs.  Responsible lenders want to help students become responsible, credit-worthy consumers in the future.