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A lender must meet the guarantor’s eligibility requirements and execute an agreement to guarantee loans with that guarantor. The agreement defines the terms and conditions of the lender’s participation in the Federal Family Education Loan Program (FFELP) under the guarantor’s loan programs. A separate agreement may be required for each program in which a lender participates.
Lenders wishing to participate in ISAC-guaranteed loan programs [ISAC Rules, Section 2720.20 (f)] shall submit an application which shall include, but not be limited to: servicing/secondary market agreements; previous compliance and audit reviews conducted by other guarantors and the U.S. Department of Education (ED); documentation relating to the percentage of student loans as compared to other installment loan portfolios; and other information relating to student loans requested by ISAC to show the lender’s qualifications for participation. Program participation will be determined by an examination of those materials and compliance with federal laws and regulations and State rules and statutes.
ISAC Lender Agreement Packet
At ISAC, all approved lenders must execute a Lender Agreement prior to participating in the FFELP through ISAC [ISAC Rules, Section 2720.20]. Lenders must have received approval from ED prior to executing any Agreements with ISAC.
When you click on and open the Lender Agreement packet, you will find complete instructions, as well as a Lender Agreement, a Lender Information Sheet, and the Required Financial History Information Form. Complete and sign two copies of all Agreements and return to ISAC. Signed copies will be returned once the Agreements are fully executed.
Educational Lenders
Educational lenders are schools that choose to act as a lender. They must meet the eligibility requirements of institutions as outlined in ISAC Rules, Section 2720.30, Institutional Eligibility, and must meet the eligibility requirements established for lenders as outlined in Section 2720.20, Lender Eligibility. Also, educational lenders must comply with all federal regulations related to the origination, disbursement, and servicing of a loan (34 CFR 682.601). If the institution is approved as an educational lender, an Educational Lender Agreement must be executed. If a school is interested in participating with ISAC as an Educational Lender, contact ISAC at lenderservices@isac.org for additional information and procedures.
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