Here is a full summary of the survey results: Download Private Loan Lender Lists_Flash_1209_FINAL
Here are the highlights from the survey results:
- Overall, only 10% of survey respondents indicated that they would use a lender selection process to develop a preferred lender list for private loans in 2010-11
- Note that with 30% of respondents still uncertain about a lender list for private loans in late December, of those who have made up their minds, roughly 1 in 7 administrators have decided to develop a preferred lender list for private loans in 2010-11
- The 10% figure compares with the 35% of respondents who indicated in June 2009 that they would be completing a formal selection process for their 2009-10 list.
- Respondents at four-year private institutions had the highest rate, with 15% indicating that they would use a formal lender selection process to select preferred lenders
- 55% of four-year private institutions intend to link to a third-party site also
- Most respondents indicated that they would either NOT have a lender list for private loans (29%) or would list ALL lenders that their students had used over the past 3-5 years (24%)
- The top reasons given by schools using a preferred lender list for private loans were (in order of popularity):
- Saves money for families
- Valued by families (saves them time, helps them feel better about decision)
- Saves staff tim
- 67% of respondents believe that lenders’ approval rates on private student loan applications are either much lower (12%) or lower (55%) than last year
- Figures from June 2009 survey: 53% of respondents believed that lenders’ approval rates on private loans were either much lower (7%) or lower (46%) than last year
- Overall, 72% of financial aid administrators indicated that they were either Very Concerned (13%) or Moderately or Somewhat Concerned (59%) about the availability of private student loans
- Figures from June 2009 survey: 58% of financial aid administrators were either Very Concerned (14%) or Somewhat Concerned (44%) about the availability of private student loans for the 2009-10 academic year
- Financial aid administrators are utilizing a variety of strategies to deal with a private student loan market that continues to contract including:
- Recommending use of a cosigner
- Ensuring families use private loans as a last resort
- Encouraging use of Parent PLUS loans
- Highlighting importance of shopping around for best loan
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