Your Right As a Borrower:
The Higher Education Act of 1965, as amended (HEA) prohibits institutions from refusing
to certify a loan because of the borrower's choice of lender (or guaranty agency).
Students and their parents should understand that they are not required to use any
of the lenders on SUNY Fredonia's "Recommended Lender" list, and are free to select
the lender of their choice. SUNY Fredonia will promptly certify any loan from any
lender selected by a borrower. Lenders who are included in SUNY Fredonia's "Recommended
Lender" list disclose agreements to sell their loans to other entities. The selection
of lenders for inclusion on SUNY Fredonia's "Recommended Lender" list is based solely
on the best interests of the students and parents who may rely on such a list. In
compliance with the New York State Attorney General's Code of Conduct, the process
through which recommended lenders are selected is fully disclosed through SUNY Fredonia's
Request for Information (RFI) process.
As of February 14th, 2010 all Alternative Loan Lenders are required by the Federal Government to process
alternative loans according to the new regulations tied to the Title X of the Higher
Education Opportunity Act (HEOA). Each borrower will be issued three different disclosures
and a newly created self certification form during the time their loan is being processed.
On the self certification form that will be given to students by their lender it will
require students to fill in the Cost of Attendance and the Estimated Financial Assistance
for the period of enrollment that the loan will cover. This information can be obtained
by the student through their YOUR CONNECTION account. The student’s Financial Aid Award letter is another place where the student
can find their Estimated Financial Assistance. In order to speed up processing time
we encourage students to quickly reply back to requests for information received from
their lender. As a result of these new regulations borrowers should keep in mind
that there could be an increase in the time it takes for both the lender and the school
to process their alternative loan.