Preferred Private Lender Info

Preferred Private Lender Info


To view our list of recommended Private Alternative Loan lenders, please visit FASTChoice.

The following are disclosure statements about Alfred State's Preferred Lender list:

Why does Alfred State have a Preferred Lender List?

The Student Records and Financial Services Office at Alfred State has the best interests of our student and parent borrowers as our primary concern. The Student Records and Financial Services Office takes student loan counseling very seriously. While there are a multitude of student loan companies offering hundreds of different products, features, benefits and incentives; we know that the average student/parent does not have the time, knowledge, or resources to research all of the available options. We also know that promotional materials or Web sites developed by some lenders are intentionally misleading.

Alfred State closely monitors the performance of all of our student loan lender partners to ensure the highest quality of service and products for our students and families. Our Preferred Lenders have demonstrated a commitment to providing the very best customer service, technology, and borrower benefits. These lenders have worked collaboratively with the higher education community to continuously improve and augment the services we provide. They are committed to keeping borrower costs as minimal as possible. Our lenders provide detailed information about their product and services, allowing us to provide a side by side comparison of each lenders' interest rates, fees, features, and benefits. Most importantly, our Preferred Lenders have worked collaboratively with the Alfred State Student Records and Financial Services Office to ensure that our borrowers are receiving the best product the industry has to offer.

How does Alfred State select Preferred Lenders?

The terms, conditions, and benefits our lenders provide are evaluated each academic year. As a result, new lenders may be added due to improvements in their borrower benefits, customer service, and technology. Lenders are included on this list based solely on these criteria. Students and parents can be assured that the lenders who make the list have earned the designation through superior service to our students, families, and the college.

Preferred Lender Requirements

Borrower Benefits

Lenders must retain competitive rates and repayment benefits must mirror industry standards. To ensure that our borrowers receive the most competitive repayments, high priority is given to lenders who provide above average repayment benefits to student borrowers. Borrower benefits are listed on our website at High value loan services must be offered by selected lenders. “Value” is not always about price, although our list contains several of the lowest cost providers. Value might be defined as incentives for on-time payments, opportunity to defer payments until graduation, and immediate interest rate reductions. These are just a few examples of the many borrower benefits offered by our lenders.

Lender Stability

Lenders must be divisions or affiliates of federally insured commercial banks, federally insured savings banks, credit unions, other established financial services companies, or contract with loan servicers that have been actively engaged in the student loan industry for at least five years. This helps to ensure that the lender will still be there for students in future years.

Lender Customer Service

Lenders must have a proven record of superior customer service. This includes offering a variety of payment options including but not limited to auto-debit and web-payment. Lenders must maintain student loan departments staffed by knowledgeable personnel, provide toll free telephone access, and be available nights and weekends in addition to daytime hours.

Lender Technology and Operational Standards

Students at Alfred State expect and deserve quick, efficient, and accurate processing of their student loans. Student borrowers want a simplified loan delivery system that includes Internet processing. Waiting in line is unacceptable. For the benefit of both the student and the college, it is essential that a lender possess state of the art operations, including real time web sites and 24/7 access to loan information. Lenders must be able to interface with BANNER and ELM Resources. Lenders must be able to transmit loan funds through EFT as well as process/update loan transactions in real time. Timely and responsive processing with excellent problem resolution service within 24 hours is essential. A toll free number for borrower information is required. Lenders must have a school focused support process. Call centers should be familiar with Alfred State's procedures for all federal loan programs.

Default Management

It is important for lenders to provide Web based default management tools and early intervention for borrowers who are delinquent on their loan payments. Preferred lenders provide payment and repayment calculators, consolidation information, planning/budgeting tips, and credit information to both students and parents. They also provide information to borrowers about costs of deferment/forbearance. Lenders should also provide financial literacy programs including budgeting and credit management. Commitment to debt management and default aversion provides services to our students through cooperative efforts with the college. These services include numerous activities such as providing Web sites to educate students on financial issues, offering debt management tools, and offering credit management programs. Responsible lenders have an interest in assisting our students to become responsible, credit worthy consumers in the future.


The Student Records and Financial Services Office at Alfred State continually monitors our policies and procedures in an effort to improve our efficiency and service to student borrowers. We depend on our lender partners to support us in this endeavor by keeping us apprised of market changes and providing training on new regulations. We expect our lenders to be flexible and able to respond quickly to accommodate changes or provide required information.


No lender will knowingly misrepresent themselves or their institution's terms, conditions, or benefits. There is a mutual expectation between the lender and Alfred State that neither party will solicit for individual gain.

Do I have to select a lender from the Preferred Lender List?

Absolutely not! The Higher Education Reauthorization Act ensures that you may select any lender that participates in the student loan program. The Student Records and Financial Services Office at Alfred State has and will continue to process your private alternative loan with the lender of your choice.

If you select a lender that is not on our list, please be sure to do your research. Make sure that their benefits, terms, and conditions mirror those of the banks on our list. For a side by side comparison of our Preferred Lender benefits, please go to Fast Choice.

You should also be aware that many credit unions, small banks, and “start up” lenders do not possess the technology to process their loans in an electronic format. If you submit a paper loan application, processing can take four to six weeks; compared to two to three days for an electronic loan application. They also may not have the capacity to send your loan proceeds via Electronic Funds Transfer (EFT) which will significantly delay receipt of your money.

After reviewing all the information available, you should ultimately make the decision that is best for you and your family. Please be assured that you will suffer no penalty for choosing a lender that is not on our Preferred Lender List.

If you have any questions, please contact the Student Records and Financial Services Office toll free at 1-800-4-ALFRED, option 2, or by email at

What about Preferred Lenders for Alternative Loans?

This list is provided as a resource for your convenience. Please be aware that Alternative Loans are not regulated by the government in the same manner as Federal Direct Stafford Loans and Federal Direct Parent Loans. Therefore, the terms, conditions, and interest rates vary widely.

Most banks provide some form of an educational alternative loan. The lenders included on our list are provided as an example of what is available. Please do your own research to ensure that you select the alternative loan that best meets your needs.

If you have any questions, please contact us.