Lender of Last Resort Program
Overview
The FFELP Lender of Last Resort program was created so no qualified borrower at a qualifying institution would be denied access to a federally guaranteed student loan.
What is the Lender of Last Resort (LLR) Program?
The LLR program is a fail-safe that ensures access to student loans during tough economic times and credit crunches, even for qualified borrowers who have been declined by multiple lenders.
As the auxiliary to the California Student Aid Commission (CSAC), EdFund administers LLR loans for eligible borrowers attending institutions in California and California residents attending schools in another state.
CSAC/EdFund can also provide LLR loans to institutions that have campuses in more than one state, based on their administrative processes, if the main campus (or administrative office) is located in California.
Do you think you qualify for LLR?
- First, your school must confirm that you meet the qualifications for a conventional FFELP (Stafford or PLUS) student loan.
- Your school will then determine your eligibility to obtain an LLR loan and will notify EdFund. You may be asked by your school to provide additional documentation to determine your eligibility for LLR.
- If you do not attend school or live in California, please contact your Financial Aid Office for information on the appropriate LLR program for you.
Now what do you do?
Don’t panic! Your Financial Aid Office can help you through the loan process, which is not complicated:
- Complete a standard FFELP master promissory note
- Complete entrance counseling
- If needed to finalize your LLR packet, provide back-up paperwork
You’re done!
Your school is working in partnership with EdFund to make certain its students and families can secure the federally guaranteed student loans they need.
Questions? Call your FAO or EdFund Customer Service at 888.223.3357.
View this information in PDF format.
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