Can a Lender Decline me for the Stafford Loan? | 11.10.09

Posted in Financial Aid, Stafford Loan By Student Loan Network Staff

A FFEL lender is prohibited from discriminating against an applicant on the basis of race, national origin, religion, sex, marital status, age, or disability. However, a lender may decline to make loans to students who do not meet the lender’s credit standards, to students at a particular school because of the school’s default rate, or to students enrolled in a particular program of study. A lender may also decline to make FFELs for less than a specified amount, for example, $500.

The good news is that there’s more than one FFEL lender available to disburse funds for students.  If one lender turns you down you should complete a MPN with a new one.  Check with your school for a list of lenders they work with.

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One Response to “Can a Lender Decline me for the Stafford Loan?”

  1. kerri says on November 10, 2009 at 6:31 pm:

    I have done all that and still got denied so what gives

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