Selection Criteria for Recommended Lenders

Chapman uses the following criteria when making lender recommendations to students:

1. Telephone service to borrowers.  Lenders must have toll free telephone numbers to provide counseling and support.  Preferably, telephonic communication will be available during normal West Coast business hours (8:00 am to 5:00 pm Pacific Time).
2. Borrower benefits.  Lenders must be willing to provide reduction in interest rates, loan fees, and/or loan principal.
3. Written communications with borrowers.  Lenders must have good written communications about their student loan products.  The publications should encompass debt management, lender contact information, loan terms and conditions, and procedures for making payments, requesting deferments and forbearance.
4. Compatible computer system.  Lenders must possess an efficient administrative process that will assure fast, effective, loan originations.  Use of Sallie Mae origination services is preferred.
5. Resolution of problems.  Lenders must have in place a system that will promptly resolve any difficulties that students or the university may have.
6. Default prevention strategy.  Lenders must have a strategy for reducing student loan defaults that exceeds the minimum requirements set forth by law.
7. Loan default rate.  Lenders must have a default rate below the national average.
8. Web based services.  Lenders must have a web address that will enable students to learn of the status of their loans and the terms and conditions related to their loans.  Procedures for making loan payments and requesting loan deferments and forbearance should be easily accessible.  Students should be able to print whatever forms they may need from the lender’s web site.
9. Electronic Funds Transfer.  Lenders must be able electronically to transfer moneys from their accounts to the university so that funds can be delivered to students quickly
10. Email.  Lenders must have an email address and be responsive to students who use this medium to convey information and ask questions.
11. Secondary markets and loan servicers.  If a lender sells student loans to a secondary market or outsources its collection activities, it must communicate promptly and clearly to the borrower that the loan has been sold or is being serviced by another entity.  Such communication must include complete contact information about the new holder of the loan or the servicer, as appropriate.  The original lender must retain information about the loan and be prepared to refer students to the servicer or the new holder of the note.
12. Financial stability.  Lenders must be in good financial condition as evidenced by their annual financial reports.
13. Sharing of borrower information.  Lenders must not transfer information about their borrowers for any purpose other than originating, servicing, or collecting the student loan.  If the lenders share information for these purposes, the entity that receives the information also must agree to not to provide the information to other interests for purposes other than management of the student loan.