Preferred Lenders

Federal Stafford Loans and Federal PLUS Loans

Based on a careful review of borrower benefits, customer service and other factors, the Financial Aid Office recommends the following lenders for Federal Stafford Loans and Federal PLUS Loans for the 2009–2010 academic year:

• ALL Student Loan
  
• EdAmerica
• National Education
• Nelnet
• Sallie Mae Education Trust
  
• Stanford Federal Credit Union
• StuFund (Student Funding Group)
  

You may compare the benefits offered by our preferred lenders by using our online lender comparison tool.

PLEASE NOTE: You are not required to use one of our preferred lenders. You may use any lender that participates in the Federal Stafford and/or PLUS loan programs.

Selection Process for Preferred Lenders

Federal Stafford or PLUS loan borrowers may choose any lender that participates in the Federal Family Education Loan program. The basic terms of the loans (maximum interest rate, maximum fees, deferment options) are set by the federal government. However, some lenders offer special benefits to borrowers. The Stanford Financial Aid Office encourages you to compare the benefits offered by different lenders so that you can make an informed choice.

To make the selection process easier, the Financial Aid Office has identified a group of seven participating lenders for our Preferred Lenders list. Our process for identifying our preferred lenders included the following steps:

• We developed a standard survey for lenders using a web-based tool created by a national loan guarantee agency. The tool was designed to facilitate a thorough, unbiased lender comparison process.
• We chose survey questions measuring many factors including borrower benefits, customer service quality, electronic services for borrowers, ability and willingness to use our preferred processes for origination and disbursements, organizational mission, and history of serving Stanford students and parents.
• We invited all participating lenders to respond to our survey with information about their Stafford and PLUS loan programs for the 2009-2010 academic year. Twenty lenders submitted survey responses.
• We evaluated the survey responses using a weighted rating system. The tool kept the identities of the lenders hidden during the evaluation process to prevent bias in ratings. The lender names were revealed only at the conclusion of the evaluation process.
• The seven lenders with the highest scores are our preferred lenders for the 2009-2010 academic year.

Our list of preferred lenders is reviewed and updated every year based on the criteria listed above. The Stanford Financial Aid Office does not receive, and will not accept, inducements from lenders in exchange for inclusion in the preferred lender list.

Stanford does not share in the profits from student loans. Borrowers are welcome to choose any participating lender, regardless of whether it appears on our preferred lender list. To select a lender that is not on the list, call our loan guarantee agency, Northwest Education Loan Assocation (NELA), at (800) 979-4441.

If you would like to provide feedback on our preferred lender list, we welcome you to contact us. You can send an email message to financialaid@stanford.edu, call us at (888) 326-3773, or stop by our office at Montag Hall, 355 Galvez St.