How Does School Certification Work?
BIG Ideas:
- School certification is when the college you plan to attend verifies your eligibility for the loan and your school enrollment status.
- Certification can take anywhere from three weeks to three months to complete, depending on the school.
- To stay on top of the certification process, log in to your school’s website.
You’ve made tremendous strides in your quest for college. You’ve selected a school. Completed the FAFSA. YES! And applied for a private loan to help you make up the difference where financial aid and your savings leave off.
There’s just one important step that must happen before you can get the loan that will help make your college dream possible: school certification.
Required by law, school certification is a process in which the college, or more specifically, its financial aid office, will verify your eligibility for the loan and your enrollment status.
Certification was designed to ensure borrowers get the right loan amount, are informed about their rights, and don’t borrow more than they need (Always a good thing!).
Certification is also required for federal loans, though the process varies slightly.
How School Certification Works for Private Loans
After you apply for a private student loan, your lender will send the information you provided on your loan application to your school.
Your school will use that information to verify important details of your loan, including:
- The amount you want to borrow (Note: For private loans, the loan amount cannot exceed the cost of attendance (COA) minus any financial aid.)
- Your cost of attendance – tuition and other expenses
- How/when funds will be disbursed
- Your expected graduation date
- Your enrollment status, which must be at least half-time
If your information falls within the guidelines, the school will certify the loan.
The school may also alter the loan request, such as reducing your loan amount if they establish that you’re borrowing more than you need. And, if they determine you won’t be enrolled at least half-time or if financial aid covers the full cost of attendance, the school could cancel your loan request altogether.
The certification process varies from school to school but may take anywhere from 3 weeks to 3 months to complete.
Once the loan is certified, the lender will notify you and provide disclosures for you to sign, which detail the terms and conditions of your loan.
After you sign the disclosures, there is a mandatory three-day waiting period during which you can cancel the loan without penalty. When the waiting period ends, the lender will disburse funds to the school.
What You Can Do to Keep Certification Moving
Though the certification process takes place between the school and your lender, it’s important to stay on top of the process by logging into your school’s financial aid website to see the status of your loan. Also, check to make sure the information on your application is correct and up to date.
If you have concerns about the process or if your loan is canceled, contact your financial aid office to understand the reasons why and how you can rectify the situation.
Brazos is Here to Make Your College Plans Possible
For more than 40 years, Brazos Higher Education has helped students and parents realize their college dreams. As a non-profit, we offer great rates on private student loans that can save you money. Contact us to learn more.
