Private Educational Student Loans
The Lord Fairfax Community College (LFCC) Financial Aid Office recommends that students utilize federal student loans before considering private educational loans. Federal loans have lower fixed interest rates and also have deferment and consolidation options. Students who need further financing beyond federal student loan eligibility should select the loan that best meets funding needs and offers the best interest rate and borrower benefits. LFCC has no written or implied preferred lender arrangement with lenders on its list of possible lenders.
At LFCC, we believe families should have as much information as possible to make individual loan choices that are in their best interest. Many families find it challenging to gather accurate loan information to make the best borrowing decision. To assist you, LFCC maintains a list of possible lenders families may wish to include when comparing private loan options; however, borrowers are not limited to LFCC’s private lender list and may select a lender not on LFCC’s private lender list.
After a family has researched and selected the alternative loan of their choice, and once the lender approves the loan application, LFCC promptly provides loan certification information, so the funds can be credited as soon as possible to the student’s account.
The method and criteria used by LFCC when selecting lenders of private loans whose information we will share with students and parents are as follows, and students and families should compare loan options and seek lenders that offer the most favorable loan products as determined through:
- Loan Terms (e.g., interest rates, fees charged, and front end borrower benefits)
- Customer Service (e.g., timeliness of processing and disbursement, ease of application, web-based services)
- Savings Potential (e.g., rate reduction and/or consolidation options)
- Default Prevention (e.g., standards to help students maintain good account standing)
Examples of private loan lenders:
The alternative loan information we provide to students and parents is for their information in comparing loan options, and does not imply any particular endorsement or recommendation by LFCC regarding specific lenders. Please view the Code of Conduct for Educational Loans below for more information on LFCC’s commitment to conducting ethical financial aid practices in the interest of students, and in compliance with applicable law. The Private Educational Loan Disclosures below for additional facts regarding private educational loans.
The institution and its employees are banned from any revenue sharing arrangements with lenders.
No employees of financial aid offices and those employees who have responsibilities with respect to education loans shall solicit or accept any gift from a lender, guarantor, or servicer of education loans.
- Gifts are defined as any gratuity, favor, discount, entertainment, hospitality, loan or other item having a monetary value of more than a de minimus amount, and includes a gift of services, transportation, lodging, or meals, whether in kind, by purchase of a ticket, payment in advance or reimbursement. Gifts do not include: standard material activities or programs related to a loan, default aversion/prevention, or financial literacy (e.g. workshops, training); food, refreshments, training or informational material furnished to an employee of an institution as an integral part of a training session designed to improve the service of a lender, guarantor or servicer of educational loans to the institution, if the training contributes to the professional development of the employee; loan benefits to a student employee if they are comparable to those provided to all students at the institution; entrance and exit counseling services provided to borrowers to meet the requirements of the HEA provided that the institution retains control of the counseling and the counseling is not used to promote the lenders products; philanthropic contributions to the institution by the lender.
Employees of the College’s financial aid offices and those employees who have responsibilities with respect to education loans shall not accept from a lender or affiliate or any lender any fee, payment, or other financial benefit as compensation for any type of consulting arrangement or other contract to provide services to a lender or on behalf of a lender relating to education loans.
- The College will not for any first-time borrower, assign through award packaging or other methods, a borrower’s private loans to a particular lender; or refuse to certify, or delay certification of, any loans based on the borrower’s selection of a particular lender or guaranty agency.
The College shall not request or accept from any lender any offer of funds for private loans, including funds for an opportunity pool loan, to students in exchange for providing concessions or promises to the lender for a specific number of federal loans made, insured, or guaranteed, a specified loan volume, or a preferred lender arrangement.
The College shall not request or accept from any lender any assistance with call center staffing or financial aid office staffing (there are exceptions such as professional development training, providing counseling materials-debt management materials, etc. provided that the lender is disclosed on the materials; short term nonrecurring assistance during emergencies).
Employees of the College’s financial aid offices and those employees who have responsibilities with respect to education loans and who serve on an advisory board, commission, or group established by a lender, guarantor, or group of lenders of guarantors, shall be prohibited from receiving anything of value from the lender, guarantor, or group of lender or guarantors, except that the employee may be reimbursed from reasonable expenses incurred in serving on such advisory board, commission, or group.
Borrowers who have questions regarding federal or private student loans are encouraged to contact the Financial Aid Office for more information or individual assistance.