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Lenders: The lender is the institution from which money is actually borrowed, but the interest rates and terms of the loan are set by the U S Department of Education.
Guarantors: The guarantor guarantees the loan and provides repayment assist to prevent students from defaulting.
Originator: The student loan originator is the agency that disburses the loan funds on behalf of the lender.
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Servicers: Most lenders choose to outsource the administration of loans. Once you go into repayment, you will probably have to direct all loans questions to your servicer.
Master Promissory Note (MPN): The MPN is a legal document that you need to sign to agree to all of the terms and conditions of the Federal Stafford Loan. At KCKCC, student loan borrowers are required to sign a new MPN each academic year loan funds are borrowed.
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Fees: Federal student loans have an origination fee of up to 3% and/or guarantee/default fee of up to 1% of the total loan amount. These fees are deducted from the loan. It is your responsibility to research if a lender passes these fees to the borrower or if the lender pays all or a portion of the fees for the borrower.
Entrance Counseling: First time borrowers must complete Student Loan Entrance Counseling.
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