Congratulations on securing an approval for a student loan with 8B Education! As you prepare to embark on your academic journey, you might be wondering about the final steps to ensure your loan gets disbursed. The FAQ below is designed to shed light on the loan certification and disbursement process, breaking down the procedures and answering all your questions.
1. What is a student loan certification?
Student loan certification is a mandatory step that must be completed before the school receives the loan funds. It involves verification of enrollment details such as expected graduation date, year in the program, loan amount, and satisfactory academic progress.
2. Why is student loan certification needed?
It’s a legal obligation to ensure transparency and compliance with the United States’ Higher Education Act of 1965 and the Truth in Lending Act. It helps verify borrower eligibility and disclose financial details.
3. Can you briefly describe the student loan certification process?
- The borrower completes the loan process by submitting required documents on the Campus Door Platform. The Promissory Note is then generated and signed by the student.
- Campus Door submits the loan certification to the school, once the Promissory Note is signed by the borrower.
- The school reviews and certifies the loan details.
- 8B provides a final loan disclosure to the borrower.
- Borrowers are entitled to a “Right-to-Cancel” waiting period of (3) three business days.
- The lender then disburses the loan funds to the school once the 3-day period has passed.
How long does the certification process typically take?
It can take anywhere from one day up to a few weeks, depending on how quickly the financial aid office reviews the student file. The certification often occurs close to the start of classes for up-to-date enrollment information. Typically, during August and January when new academic terms are beginning, the certification process is generally a few days. During other times of year, schools will usually wait to certify until a date that is closer to the term start date.
5. Can borrowers speed up the certification process?
In some cases, yes, by being proactive. Monitor emails and notifications from 8B, stay informed, and respond promptly to requests. You can also visit your school’s financial aid office to inquire if the certification request has been received, and to encourage them to speed it along. These steps can help speed up the process because in the peak season, schools often receive hundreds of requests and can take a bit of time to review them all.
6. What if the school doesn’t certify a borrower’s student status?
The lender can’t disburse the loan funds. This can lead to payment delays or halt disbursement entirely if the enrollment can’t be certified. We encourage students to follow up with their school’s financial office to
7. What actions should be taken if there’s an error in certification by the school?
- Contact the financial aid department immediately.
- Alert your 8B Borrower Success Analyst.
- Ensure continued enrollment in classes.
What if the error in certification is on the student’s part?
- Contact the school’s admissions and records department or relevant degree program department with corrections.
- Alert your 8B Borrower Success Analyst.
- Take proactive steps and keep the departments informed.
