The Office of Student Financial Aid and Scholarships (OSFAS) considers every aspect of the administration of educational loans to be a vital part of its service to students and their families. In conducting the responsibilities mandated by statute, regulation, and/or other directive as well as those associated with quality service delivery, the OSFAS adheres to the following guiding principles:

  I. The OSFAS will continue to process educational loans through any lender requested by the borrower without any prejudice. When appropriate, and in what is believed to be the borrower's best interest, timely communication will be initiated to help ensure that the borrower is aware of any potential issues that might arise from his or her lender selection; however, the borrower's lender choice will always be honored.

 II. The OSFAS will continue to maintain a professional relationship with all lenders of educational loans with whom it has worked for the most recent three-year period. In an effort to assist in the selection of a lender, a listing of every lender* our students and parents have used for a Federal Family Educational Loan (FFEL) for the most recent three year period will be made available. The OSFAS is not allowed to offer any endorsement or provide any specific information about these lenders; however, it encourages that students and parents learn all they can about any lender they are considering.  A great deal of information may be found at the lender’s web site.  OSFAS staff will continue to respond to specific questions about any of the lenders listed to the extent of their knowledge. The following practices are currently in effect:

1. When borrowing under the federal Stafford Loan Program, first-time borrowers may select their lender from a list of all lenders* used by USC students in this program over the past three year period, or they may select another lender of their choice. Once a lender is established, any future Stafford Loans will automatically be processed to the same lender unless otherwise directed by the student borrower.
2. Parents and graduate students who wish to borrow through the federal PLUS program may select their lender from a list of all lenders* used by USC students or their parents in this program over the past three year period, or they may select another lender of their choice. Once a lender is established, it is suggested that all future PLUS borrowing remain with that lender in order to prevent concurrent repayments.
3. Students who wish to borrow a private educational loan may select from a list of lenders that, to the best of OSFAS knowledge, currently make private educational loans to students, or they may select a lender of their choice. As with other borrowing for education expenses, it is generally best to stay with the same lender for any additional private loan borrowing.

III. The OSFAS and staff will never request or accept anything of value from any lender in exchange for any advantage related to loan volume, assigned placement on a "preferred lending" list, or any similar activity or benefit. Income or profit sharing relationships are clearly seen by the OSFAS as inappropriate as are any types of social or entertainment related gifts. Further, OSFAS staff will ensure that the information they provide is accurate, unbiased, and that it does not reflect any preference arising from actual or potential gain. Staff will always refrain from taking any action believed to be contrary to law, regulation, or the best interests of the students or parents being served.

IV. While the staff of the OSFAS fully appreciates the value of working in consort with lenders to improve the quality of their goods and services, no individual member or members of the OSFAS will accept anything of value, including reimbursement for associated travel, for participating on lender advisory or governing boards.

V. The OSFAS will neither request nor accept any staffing services from employees of a lender. Should there be any casual conversation between a visiting lender and a student, OSFAS officials will ensure that the lender employee does nothing to misrepresent him or herself to a student or parent in a way that might be construed as being a representative of the University. Further, the OSFAS will never participate in the branding of private educational loans with the school's name.

VI. While written specifically in association with the administration of student loans within the Office of Student Financial Aid and Scholarships, the University of South Carolina recognizes that this code applies to all of its administration, faculty, staff, and affiliated organizations. Further, the University agrees to guard against any relationship that could be construed to reflect impropriety with regard to the administration of educational loans within the University.  

*Lenders that, to the best of OSFAS knowledge, are still participating in the Federal Family Educational Loan (FFEL) programs and from whom our students and their parents have previously borrowed.

Initiated 09/07; revised, 02/09