January is the time when most lenders should have their 2008/2009 terms available. If you distributed an RFI or RFP in the last few months and received responses, check back with lenders and confirm the responses they gave. The issue is particularly timely this year because updated terms may be delayed due to market unrest.
You also need to think about your plan of action in case lenders can’t confirm their terms for 2008/2009 for another few months:
- What impact would a change in terms have if the rates significantly affect the value to students?
- How will you go about informing students of this unexpected change?
- Will you provide language indicating the terms are still subject to change at the time of distribution?
- Need help getting the right language down on paper? You may consider using: “Recent legislative changes and turmoil in the student loan financial marketplace could cause changes in student loan program offerings. The information provided is the best information available to University X at the time of printing. Borrowers should confirm benefit offerings with their lenders at the time of application.”
In our December article, “Drafting Your RFI or RFP: What Matters,” we suggested you rank lender features that are important for your particular situation. Once you reach out to lenders to confirm the terms they provided, remember to also go back and re-evaluate their responses based on the scale you created – what is most important for your school?
If you have not yet sent out your RFI/RFP, you can use our updated RFI/RFP template as a starting point for drafting your own document.
If you have any additional questions or would like further guidance, please call your school representative at 1-866-902-6038 or e-mail at sales@theloanprogram.org.
Do you have an RFI/RPF distribution success story? Share it on this blog.