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Private Loan Next Steps

What happens once I've made my application to my lender of choice?

At three different points in the application process your lender is required to provide loan disclosure information to you. They must also collect a Private Education Loan Self-certification form from you before disbursement of any loan funds.

Once your lender fully approves your application (usually after they have received your signed application) they will notify UMD that your loan is ready for school certification. Some lenders may withhold requesting school certification until you have submitted the Private Education Loan Self-certification form. Each lender is different, so it is important you follow their application process. UMD will certify your loan eligibility based on the cost of attendance for the loan period, other aid you will receive, and the amount you requested. We request disbursement dates to correspond with the start dates for your enrollment/loan period.

The Office of Financial Aid will send you a revised eFAAN when we certify your loan to the lender. Most lenders will electronically forward your loan disbursements to UMD on the date(s) requested, as long as you have responded to the approval disclosure and sent them the Private Education Loan Self-certification form.

UMD will electronically transfer your loan disbursement to your tuition account with Student Financial Services. Funds will first be credited toward any outstanding tuition and fees.

If you are entitled to funds in excess of your tuition bill, Student Financial Services will issue you a surplus check, or direct deposit the excess funds to your designated account. Some lenders disburse paper loan checks, payable to the borrower and UMD. If this is the case with your lender, UMD will notify you via your University e-mail account when your check is ready for disbursement, and you will then need to claim your funds at the One Stop Student Services.

Loan disclosures

The 2009 Truth in Lending Act requires lenders to disclose loan information to you as a part of the application process.

The first disclosure, the Application Disclosure, will be at the time you apply, or when you inquire with the lender about a loan.

The second disclosure, the Approval Disclosure, is sent to you upon full approval of your application. Generally, this means the lender has credit approved your application, received your signature (plus your cosigner's, if you have one), and received any other income verification documents they may have requested. You need to respond to your lender within 30 days to accept or reject the terms of the loan; the longer you take to respond, the longer it will take for the lender to disburse loan funding.

The third disclosure, the Final Disclosure, is sent once you've accepted the terms of the loan. This disclosure will provide a "right to cancel" period, by law a minimum of three days. Your loan cannot be disbursed to UMD, for disbursal to you, until the lender's right-to-cancel period has ended. At some point in the disclosure process, your lender will also advise you to complete, sign, and return a Private Education Loan Applicant Self-Certification form . Lenders will accept the form at any point during the disclosure process. The lender must have this form on file before disbursing funding. Use the lender-provided form whenever possible, as it will be pre-populated with identifying information they will use to expedite processing.