What should I do if my lender withdraws from the Federal Family Education Loan Program (FFELP)?

If you discover your lender has withdrawn from FFELP, you must complete a new Master Promissory Note (MPN) with a participating lender. If you need assistance choosing a new lender, you should contact your school’s financial aid office.

Depending on your school’s process, you can complete a paper MPN or complete an electronic MPN using ASA Direct^®. Please contact your school or ASA for assistance on how to proceed.

Can ASA help me select a lender?

ASA will not recommend one lender over another. However, if your school has a preferred lender list with ASA, we will let you know which lenders are on that list. If you need assistance choosing a new lender, you should contact your school’s financial aid office.

The preferred lender list must include at least 3 unaffiliated lenders and specific reasoning used by your school on why they have been chosen, and it must include borrower terms and benefits. If the preferred lender list includes affiliated lenders, the list must then disclose the details of the affiliations between any of the lenders on the list. You do not have to choose a lender on the list.

The list for Federal Loans must include at least 3 unaffiliated lenders.

Your school will disclose the method and criteria for selecting lenders with the most beneficial terms to the borrowers, including:

• – Payment of loan fees for borrower
• – Competitive interest rates or terms
• – Quality servicing
• – Additional benefits beyond the standard terms

Your school will exercise care in preparing the list without prejudice and with the sole benefit of the borrowers in mind.

Your school will not deny your right to choose a lender not on the list nor will your school delay certification because you chose a different lender.

What will I see on ASA Direct^® if my lender has withdrawn from FFELP?

The lender will not be listed on ASA Direct^® during the lender selection step and if you are a repeat borrower, you will be prompted to select a new lender.