A strategy for financing your educational expenses

In the process of paying for college, your objective should be to satisfy the balance of tuition costs without spending too much on interest from loans. Our objective is to provide you with a strategy to accomplish this. We developed the customizable Villanova Financing Option to encompass the best available financing options to meet your needs.

The Villanova Financing Option includes the following recommendations, in order of cost-efficiency:

1. The cornerstone of all financial aid award packages is the Federal Stafford Loan. It offers the best available rates and repayment terms, regardless of credit history. In many cases, the Stafford Loan is completely subsidized (interest-free) during the period of school attendance.
2. Through the help of TMS (Tuition Management Systems), we are proud to offer the Villanova Tuition Payment Plan. This is a method of paying out-of-pocket (and thus interest-free), but spread out over 10 monthly payments in the amount of your choice.
3. The next-most efficient loan is the Federal PLUS (Parent Loan for Undergraduate Students). PLUS loans have very good rates and repayment terms, but the parents’ creditworthiness must be assessed first.
4. If the options above do not satisfy your balance, a private loan may fill in the gap.

Choosing a Lender

Villanova University's Preferred Lender List

To develop a preferred list of lenders for our students and their parents Villanova University surveyed fifteen lenders via a Request for Information (RFI).  The RFI was comprised of questions regarding lender information, borrower services, private/alternative loan products and school services. The RFI's were reviewed by a financial aid committee to ensure that each lender met a minimal standard of offerings and service. After carefully reviewing the lenders' responses, we are offering Villanova University's Preferred Lender List (listed below).

We chose these lenders based upon:

1.) lender's ability to offer all federal loan programs and/or a commercial loan product 

2.) competitiveness of loan terms

3.) variety of repayment options

4.) service to students and families

5.) borrower benefits

6.) reputation of the financial institution

Selecting a Lender

Borrowers are directed to Villanova University's Lender List as a starting point, but you may also look at other lenders not listed to determine if they are a better fit for your individual needs. The federal loan programs have mandated interest rates and repayment schedules so lenders compete primarily on borrower benefits and services. However, the interest rate and origination fee on private/alternative educational loans is based on the credit worthiness of the individual borrower or cosigner, if applicable. (It is advisable to apply for a private educational loan with a cosigner since the interest rate and origination fee are usually based on the highest credit score.)

Lenders may also offer back-end benefits as a means to be competitive.  Back-end benefits are benefits that a borrower may receive after going into repayment, such as an interest rate reduction for a set number of consecutive on-time payments or for automatic electronic payments. You should scrutinize back-end benefits and the criteria required to trigger the benefit on a lender-by-lender basis. Determine which benefits are important to you and if it is reasonable to obtain the benefit.

Please take the time to review the relative interest rates, terms and benefits offered by lenders before you apply for a loan to ensure the best possible terms for your personal circumstances. A link to each lender's website is provided. Families should evaluate the various terms and features associated with each loan, and make selections based on their personal best interests. Parents and students, who select a lender other than a Villanova University Preferred Lender, should review the Choosing a Non-Villanova University Lender section below.

Your student loan may be resold at any point after disbursement. Please contact your lender directly for additional information, and ask the lender if there are any preexisting agreements to sell the loan to another institution.

Villanova University will process your loan and will not delay certification of your loan regardless of your chosen lender. You are not bound by VU’s Preferred Lender List. You can choose any lender you want to process your Federal Stafford, Federal Parent PLUS,Federal Graduate PLUS or private/alernative loan.

Choosing a Non-Electronic Process Lender

All of the lenders on the suggested list allow for electronic processing of loans. Some of the lenders not on the suggested list will do electronic processing, and some will not. Should you choose a lender that is not set up for electronic processing, processing will likely be slower. The lender will send us a paper certification request, and your funds may disburse in the form of a paper check mailed to the Office of Financial Assistance. The paper process does not remove the estimated financial aid from the student account, but it can delay the deposit of actual funds into the account. We will process your loan as expeditiously as possible, but be aware that this paper transaction will likely take longer. Please contact your lender directly for additional information.

Other things to consider

It is likely that you will receive numerous paper or electronic solicitations from lending institutions.  Please know that you may choose any lender(s) that you wish.  However, in making your selections, we suggest that you consider items such as annual maximum loan limits, fees, interest rates (including how often they could change), deferral of payments while in school and any other questions you may have.

We suggest that you consider Federal Stafford and Federal PLUS loans before alternative or private loans, as the federal loans have lower interest rates.  Villanova University’s Office of Financial Assistance has dealt with a number of lenders in the past and we will be happy to assist you through the process if you need help.

Federal Stafford Loan

Chase Bank (JP Morgan Chase Bank N.A.)

Citizens Bank

PNC Bank

Wachovia Education Finance

Wells Fargo Bank

Federal PLUS Loan/Federal Graduate PLUS Loan

Chase Bank (JP Morgan Chase Bank N.A.)

Citizens Bank

PNC Bank

Sallie Mae Education Trust

Wachovia Education Finance

Wells Fargo Bank

Private Educational  Loans

Chase (JP Morgan Chase Bank N.A.)

Citibank

PNC Bank Alternative Loan Program

Sallie Mae Education Trust

Wells Fargo Bank

Financial Aid Code of Conduct

In the administration of its student financial assistance programs Villanova University (VU) abides by the National Association of Student Financial Aid Administrators (NASFAA) Statement of Ethical Principles.  In addition, Villanova University has adopted a Code of Conduct for Financial Aid which can be found below.   

Villanova University’s Code of Conduct for Financial Aid

Villanova University abides by the following Code of Conduct, which is intended to comply and be interpreted in conformity with the Higher Education Opportunity Act of 2008:

Loan Award and Certification

• Villanova University shall not assign any first-time borrower’s education loans, through award packaging or other methods, to a particular lender.
• Villanova University shall not refuse to certify, or delay certification of, any loan based on the borrower’s selection of a particular lender or guaranty agency.

Ban on Receipt of Gifts

• No officer, employee or agent of Villanova University shall solicit or accept any “gift” from a lender, guarantor, or servicer of education loans. “Gift” includes any gratuity, favor, discount, entertainment, hospitality, loan or other item having monetary value of more than a de minimus amount.
• This prohibition also applies to gifts to family members of the above individuals when the gift was given with the knowledge and acquiescence of such individual, and the individual has reason to believe the gift was given because of such individual’s official position.

Ban on Revenue-Sharing Arrangements

Villanova University will not enter into any “revenue-sharing arrangement” with any lender. A “revenue sharing arrangement” is an arrangement whereby the University recommends a lender of educational loans, and then in exchange, the lender pays a fee or provides other material benefits, including revenue or profit-sharing, to the University, or an officer, employee or agent of the University.

Ban on Contracting Arrangements with Lenders

No officer or employee of Villanova University who is employed in the financial aid office of the University or otherwise has responsibilities with respect to education loans, or an agent who has responsibilities with respect to education loans, shall accept from any lender or affiliate of any lender any fee, payment or other financial benefit (including the opportunity to purchase stock) as compensation for any type of consulting arrangement or other contract to provide services to a lender or on behalf of a lender relating to education loans.

Ban on Offers of Funds for Private Loans

Villanova University shall not request or accept from any lender any offer of funds to be used for private education loans for students, including funds for an “opportunity pool loan,” in exchange for the institution providing concessions or promises to provide the lender with: (i) a specified number of loans made, insured or guaranteed; (ii) a specified loan volume; or (iii) a preferred lender arrangement.

An “opportunity pool loan” means a private education loan made by a lender to a student attending the University or a family member of the student, that involves a payment, directly or indirectly, by the University of points, premiums, additional interest, or financial support to the lender for the purpose of the lender extending credit to the student or the student’s family.

Ban on Staffing Assistance

Villanova University shall not request or accept from any lender any assistance with call center staffing or financial aid office staffing. However, this prohibition does not preclude requesting or accepting assistance from a lender related to: (i) professional development training for financial aid administrators; (ii) providing educational counseling, financial literacy or debt management materials to borrowers that identify the lender who assisted in preparing or providing the materials; or (ii) staffing services on a short term, nonrecurring basis to assist the University with financial aid-related functions during emergencies.

Ban on Compensation for Service on Advisory Board

No employee who is employed in Villanova University’s financial aid office, or who otherwise has responsibilities with respect to education loans or other student financial aid of the University, and who serves on an advisory board, commission, or group of lenders or guarantors, shall be permitted to receive anything of value from the lender, guarantor, or group of lenders or guarantors, except for reimbursement for reasonable expenses incurred in serving on such advisory board, commission, or group.