How was the Preferred Lender List Developed?

Recently, there has been a great deal of discussion regarding how lenders are chosen by financial aid offices. The Office of Financial Aid is committed to choosing lenders who provide good service and benefits to our students. This is done by surveying more than 20 lenders every two years. Lenders are asked to provide information regarding their services via a Request for Information (RFI) (Link is a PDF).

The lenders' responses to the RFI are ranked using criteria developed by the National Association of Student Financial Aid Administrators (NASFAA). The results of these rankings and the responses to the RFIs are examined by a committee of financial aid administrators made up of members of the Undergraduate Office of Financial Aid as well as representatives from each of Northwestern's graduate and professional program financial aid offices. A second meeting is held with the Associate Provost for Enrollment Management and the Associate Vice President of Financial Operations. Northwestern’ s financial aid community presents their choices for inclusion on the list taking into account efficient processing, customer service (for parents, students, and administrators) and benefits to the borrower. The final selections must be approved by the Associate Provost and the Associate Vice President.

Northwestern continues to provide students and their families with a Preferred Lender List despite current concerns regarding such lists because we believe that it is helpful to our students, who often request guidance in the selection of a lender. The Preferred Lender List is intended as a guide only. The Office of Financial Aid will process a loan from any lender selected by a student.