College Zone - Printable Version - Lender Zone - Processes

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Although the majority of loans are guaranteed without incident, there are situations when a cancellation, rejection, denial, or revision may occur. These situations fall under the umbrella of "exceptions processing".

Cancellations are a lender/servicer function that result in a reduction of a loan’s guarantee. A cancellation may be for the entire loan or for one or more disbursements depending on a change in the student’s financial situation or financial aid package. A cancellation may also occur when the student’s enrollment status changes.

A loan may be rejected when the loan information is:

incomplete;
illegible; or
in conflict with ISAC’s records.

When processing a loan, a denial may occur when the applicant doesn’t meet:

federal eligibility requirements; or
ISAC-specific requirements.

Revising a loan is the responsibility of the school. A revision may be necessary due to a change in the student’s financial situation or financial aid package. The following loan data may be revised by the school:

certified loan amount;
disbursement amounts;
disbursement dates;
grade level;
loan period; or
graduation date.