Recently, New York Attorney General Andrew Cuomo launched an inquiry
into the lending practices of several major student loan
companies. As part of that inquiry, universities across the
country were asked to provide information relating to their specific
loan policies and procedures. The questions raised by Mr. Cuomo have
led many to believe that institutions and lenders have established
alliances that are detrimental to student borrowers and their families.
TCU, like the vast majority of institutions across the country, uses
lender lists in an effort to help student borrowers and their families
navigate the complexities of borrowing. The University also allows
students and their parents to use the lender of their choice.
Ultimately, TCU will continue to cooperate with Mr. Cuomo’s office and
comply with any change in practice, if necessary. However, the
University firmly believes that it employs sound financial aid
practices that benefit students and their families.
Frequently asked questions:
Does TCU steer borrowers to a list of preferred vendors?
Like numerous institutions across the country, TCU provides students
and families a list of lenders to assist them in navigating the
complexities of borrowing.
Can students and parents use their own lenders?
Yes, TCU allows students and their families to choose their own lender.
How does TCU pick lenders for its list?
TCU sends a stringent request for proposal to loan companies interested
in processing the University’s student loans. The University seeks
lenders who offer the best payback rate, lowest origination points and
numerous other benefits.
Does TCU receive any payment from Education Finance Partners?
TCU has a contractual agreement with Education Finance Partners, which
provides private educational loans to students who are not eligible for
additional federal student loans. This agreement provides for a
small share of the lender’s revenue to be returned to TCU students. TCU
uses Education Finance Partners as a “loan of last resort” and only
refers students to this lender after all federal dollars have been
exhausted.
How is the money used?
One hundred percent of any revenue generated from these agreements is given back to students in the form of need-based grants.
