Considering a Lender List or Updating Your Preferred Lender List?

Major changes in higher education, such as those introduced under OB3, often bring new companies, products, and services into the market. New ideas can benefit schools and students, but they also make it important to carefully evaluate the resources you recommend.

As institutions continue reviewing their Preferred Lender Lists and private loan comparison resources, we wanted to highlight five key distinctions that have made ELMSelect the trusted choice of financial aid offices for decades.

1. ELMSelect is a neutral loan comparison tool.

ELMSelect was built as a free, value-added resource for students, schools, and lenders. It is not a stand-alone product that requires lenders to pay recurring fees or commissions to participate.

This distinction matters. Section 601.21(c)(1) of the Higher Education Act's Code of Conduct prohibits institutions from recommending or listing lenders if, in exchange, the lender pays a fee or provides other material benefits to the institution or its agents. This would appear to include both flat-fee and commission-based compensation arrangements. ELMSelect requires neither.

2. Every lender on ELMSelect is carefully vetted.

ELMSelect offers one of the industry's most comprehensive collections of private education lenders and loan products, but participation is not automatic.

Before a lender is added to ELMSelect, ELM Resources conducts a thorough review process that includes principal background reviews, financial analysis, Better Business Bureau (BBB) evaluations, security and compliance assessments, and contractual commitments to ongoing operational standards. Our goal is to provide schools with a broad range of lender options while maintaining high standards for participation.

3. ELMSelect can be embedded directly into your student communications.

Sharing private loan comparison resources with students has always been easy with ELMSelect.

Using customized school-specific URLs and deep links, you can include ELMSelect in financial aid offer notifications, award letters, websites, emails, and other student communications. If you're not already taking advantage of these capabilities, our team is happy to help you get started.

4. Students can pre-qualify for more personalized rate comparisons.

Participating lenders are responsible for maintaining accurate APR ranges within ELMSelect, and those advertised rates must comply with applicable federal advertising requirements.

For example, an advertised "lowest rate" must be legitimately available, including meeting the federal standard that at least 10% of approved applicants receive that advertised minimum rate.

Many participating lenders also offer Pre-Qualify functionality, allowing eligible borrowers to view more personalized rate estimates before completing a full application. This gives students additional information to compare their options and make more informed borrowing decisions.

5. ELM Resources continues to innovate.

As the only not-for-profit mutual benefit company offering private loan comparison, certification, and disbursement services to the higher education community, we continually reinvest in improving our services.

Thousands of long-standing campus partners have experienced the enhancements our teams deliver year after year. Those improvements are driven by feedback from financial aid professionals like you, helping us continually evolve to meet the changing needs of higher education.

We're Here to Help

Innovation will continue, and so will our commitment to serving financial aid offices and the students they support.

During the past academic year, nearly one million browsing sessions relied on ELMSelect to compare private education loan options.

If you're reviewing your Preferred Lender List, looking to enhance your student communications, or simply have questions about supporting borrowers, we'd love to help.

Contact our National Service Center or Growth & Development Team to learn more about ELMSelect and the services available to your institution.

Disclaimer: This article is provided for informational purposes only and should not be considered legal, regulatory, or compliance advice. Institutions should consult their legal counsel or compliance professionals regarding the application of federal and state laws and regulations, including the Higher Education Act and applicable Department of Education guidance.