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When loan information is submitted to a guarantor, it will either be approved or denied based on the information provided or information on the guarantor's database. When the loan is guaranteed, guarantee disclosure information is transmitted to the school and the lender by ISAC via CommonLine. It is the lender's responsibility to send each borrower's loan disclosure information.
Depending upon the processing flow used by the school, loan information comes to ISAC for guarantee from either the school or lender (i.e., guarantor flow or lender flow). Prior to issuing a loan guarantee, ISAC reviews the applicant’s eligibility to ensure (s)he meets the federal eligibility requirements, as well as ISAC-specific requirements.
To help facilitate the guarantee process, the lender or school should ensure that the loan information is complete before it is submitted to ISAC. The following items should be checked:
- All portions of the Stafford or PLUS Master Promissory Note (MPN) or common PLUS Application and Promissory Note (A/PN) are completed in ink or typed. If completed in pencil, the borrower must complete a new form in ink.
- A valid Social Security Number (SSN) must be provided by each applicant. If the item is left blank or invalid, the applicant will be asked to provide or verify his/her SSN, and may be required to submit a copy of a Social Security card or other evidence establishing his/her number.
- Two complete references with different addresses are required.
- The borrower must sign and date the MPN or the common PLUS A/PN. The lender may use the receipt date as the signature date if the borrower did not provide a date on the note, or if the date is erroneous.
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