A quick refresher on Student Loan Marketplace. This loan comparison service allows borrowers to get indicative information from multiple private loan lenders with one credit pull while still requiring borrowers to apply directly with lender to consummate the private student loan. From Marketplace website: "Your submission of information to Overture is NOT an application and
the results are not loan offers. To obtain any loan presented on the
Overture site, you must submit an application to the lender directly –
nothing performed on the Overture site substitutes for or replaces any
action required with the lender directly."
Marketplace is currently active in the states of New York, California, Indiana, Michigan, Maryland, Kentucky, Mississippi, Tennessee, Alabama, Oregon and Pennsylvania, primarily through partnerships with college associations. Overture also manages a national Student Loan Marketplace.
In terms of lenders, Marketplace currently lists Discover and these six credit unions as participating lenders: CU Student Loans, Eli Lilly FCU, Mid-Atlantic FCU, NASA FCU, Northwest FCU and Star One Credit Union.
Regarding compliance with preferred lender regulations, Marketplace had this to say in a recent press release announcing the launch of Marketplace in Pennsylvania:
2010, the Marketplace will include the newly-required Preferred Lender Arrangement
disclosures and annual reporting features in an “out-of-the-box” solution, helping colleges
comply with the Section 601 regulations with virtually no increase in burden for the financial aid office."
This interest from Sallie Mae would appear to provide further validation of Overture's Marketplace concept and may also attract other top lenders to participate. Stay tuned...