Lending Process


To best understand how the Student Choice lending process works, consider the life cycle of a private student loan.

1. Program Setup [controlled by CU]

  • CU establishes a loan policy, including index, margins, and credit tiers.

2. Building Awareness [controlled by CU]

  • CU markets to prospective borrowers/members with hands-on support and guidance from Student Choice.

3. Application and Processing [managed by Student Choice]

  • Borrowers apply via the Student Choice co-branded website or 24/7 call center.
  • Application is then conditionally approved or denied (automated loan decision). If approved, documents are provided and, upon return of necessary documents, processing begins.
  • During application process, CU has full access to origination platform to review application and credit bureau information.

4. School Certification and Disbursement [managed by Student Choice]

  • After processing is completed and loan is fully approved, loan request is sent to college financial aid office for certification (process whereby the school verifies student enrollment, satisfactory academic progress, and loan amount).
  • Upon certification, funds are disbursed directly to school on date requested by school.
  • During this process, CU is continually notified via pre-funding, funding, disbursement, and reconciliation reporting

5. Loan Servicing [managed by Student Choice]

  • Upon loan disbursement, account is established with loan servicer.
  • CU has full access to servicing platform and also receives multiple reports (weekly and monthly payments report, transaction journal, and reconciliation report)
  • CU is lender of record and holds loan relationship