The Federal Reserve and the Department of Education have implemented new rules and regulations that impact students who borrow private educational loans. All lenders must be in compliance with the new regulations no later than February 14, 2010 and each lender might handle the private student loan application process differently.
Generally, this is how the process will work for most private educational loans:
Step 1: Complete private loan application
This is generally available online at the lender's website. FastChoice can help you evaluate lenders and loan programs.
Step 2: Application Disclosure Form
The lender will send the loan applicant (usually the student) an Application Disclosure Form. This may be incorporated into the application process, e-mailed to the applicant, or mailed to the applicant.
Step 3: Complete Self-Certification Form
The lender will send loan applicant a Self-Certification Form. This may be incorporated into the application process, e-mailed to the applicant, or mailed to the applicant. The form is also available here: Private Loan Self-Certification Form.
This form asks for the Cost of Attendance and Estimated Financial Assistance. This information is available on Campus Connection: Student Center > View Financial Aid > Select Aid Year > Financial Aid Summary.
(A) Cost of Attendance = Estimated Financial Aid Budget
This form must be printed, signed by the Loan Applicant, and either mailed or faxed to the lender.
Step 4: Approval Disclosure Form
The lender will send loan borrower (usually the student) an Approval Disclosure Form. This may be e-mailed or mailed to the Borrower.
The Borrower must accept the loan with the lender within 30 days (or the time frame set by the lender) or the process starts over.
Step 5: Lender sends School a Certification Request
UND processes these requests as soon as possible but during peak processing times, this may take 3-5 business days.
If we are unable to process the certification request, an e-mail will be sent to the student's U-Mail account.
Step 6: Final Disclosure Form
The borrower will receive a Final Disclosure Form after the lender receives school certification. Lenders are required to wait 6 business days from the date the Final Disclosure Form is mailed before loan funds can be sent to the school.
Please be aware that it will likely take a minimum of 15 -20 business days from the day the application process begins until receipt of loan funds.