Financial aid practices at TCU

Fort Worth, TX

3/22/2007

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.