Borrower-Choice Policy Clarified

USA Funds^® advises customers of the policy when the lender listed on a borrower’s Master Promissory Note differs from the lender listed in the school’s certification of the borrower’s loan request. Our guarantor-servicer, Sallie Mae, recently distributed communications regarding this issue.

In the event of a discrepancy in the borrower’s choice of lender, USA Funds will guarantee the loan with the lender listed in the school’s certification, with one exception: If Sallie Mae is the disbursing agent for the loan, the borrower will be contacted to resolve the discrepancy. Customers will be notified of a change in lender through CommonLine change-response files. School-customers who do not import CommonLine modification records and wish to be notified of these lender changes should contact our guarantor-servicer at (888) 272-4665 or by e-mail.

USA Funds believes that this policy supports the statutory requirement that borrowers of Federal Family Education Loan Program loans ultimately have the right to select the lenders of their choice.

Financial-aid professionals with questions about this policy should contact their USA Funds Services representative. Education-lender staff should contact Brent Dove, USA Funds director of lender relations, for additional information.