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Guarantor Flow
School Initiated

Step 1:
You provide student borrowers with details on their award package and eligibility for Stafford and PLUS loans.

Step 2:
You then certify the loan, and forward the certification file to American Student Assistance. Note that before certifying a Grad PLUS loan, you must determine the borrower’s Stafford loan eligibility and notify the borrower of the maximum Stafford loan amount he or she is eligible to receive. You must also provide a comparison of terms between Stafford and Grad PLUS regarding interest rates, when interest accrues, and when loans enter repayment.

After providing this comparison, the school must give the borrower an opportunity to request the maximum eligible Stafford loan amount.

Step 3:
American Student Assistance guarantees the loan.

Step 4:
American Student Assistance requests that the student borrower sign the MPN (either on paper or online).

Step 5:
The student borrower signs the MPN and returns it to American Student Assistance.

Step 6:
American Student Assistance obtains funds from the lender(s).

Step 7:
American Student Assistance disburses funds to your school.

Step 8:
Your school disburses funds to the student borrower’s account.

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Guarantor Flow
Borrower Initiated

Step 1:
You provide student borrowers with details on their award package, eligibility for Stafford and PLUS loans, and application instructions.

Step 2:
The student borrower applies for a Stafford or PLUS loan with American Student Assistance and signs the MPN (either on paper or online).

Step 3:
American Student Assistance requests that you certify the loan. Note that before certifying a Grad PLUS loan, you must determine the borrower’s Stafford loan eligibility and notify the borrower of the maximum Stafford loan amount he or she is eligible to receive. You must also provide a comparison of terms between Stafford and Grad PLUS regarding interest rates, when interest accrues, and when loans enter repayment.

After providing this comparison, the school must give the borrower an opportunity to request the maximum eligible Stafford loan amount.

Step 4:
You then forward the certification file to American Student Assistance.

Step 5:
American Student Assistance guarantees the loan.

Step 6:
American Student Assistance obtains funds from lender(s).

Step 7:
American Student Assistance disburses funds to your school.

Step 8:
Your school disburses funds to the student borrower’s account.

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Lender Flow
School Initiated

Step 1:
You provide student borrowers with details on their award package and eligibility for Stafford and PLUS loans.

Step 2:
You then certify the loan, and forward the certification file to the lender. Before certifying a Grad PLUS loan, you must determine the borrower’s Stafford loan eligibility and notify the borrower of the maximum Stafford loan amount he or she is eligible to receive. You must also provide a comparison of terms between Stafford and Grad PLUS regarding interest rates, when interest accrues, and when loans enter repayment.

After providing this comparison, the school must give the borrower an opportunity to request the maximum eligible Stafford loan amount.

Step 3:
The lender obtains the guarantee on the student loan from American Student Assistance.

Step 4:
The lender requests the student borrower to sign the MPN (either on paper or online).

Step 5:
The student borrower signs the MPN and returns it to the lender.

Step 6:
The lender disburses funds to your school, either directly or through a third-party disbursement agent.

Step 7:
Your school disburses funds to the student borrower’s account.

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Lender Flow
Borrower Initiated

Step 1:
You provide student borrowers with details on their award package and eligibility for Stafford and PLUS loans, and refer them to a list of suggested lenders.

Step 2:
The student borrower applies for the loan with the lender and signs the MPN (either on paper or online).

Step 3:
The lender requests you to certify the loan. Note that Before certifying a Grad PLUS loan, you must determine the borrower’s Stafford loan eligibility and notify the borrower of the maximum Stafford loan amount he or she is eligible to receive. You must also provide a comparison of terms between Stafford and Grad PLUS regarding interest rates, when interest accrues, and when loans enter repayment.

After providing this comparison, the school must give the borrower an opportunity to request the maximum eligible Stafford loan amount.

Step 4:
You certify the loan and forward the certification file to lender.

Step 5:
The lender obtains the guarantee from American Student Assistance.

Step 6:
The lender disburses funds to your school, either directly or through a third-party disbursement agent.

Step 7:
Your school disburses funds to the student borrower’s account.

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Third Party Processors

Step 1:
You provide student borrowers with details on their award packages and eligibility for Stafford and PLUS loans.

Step 2:
You certify the loan and send multiple certification files to the Third-Party Processor. Note that Before certifying a Grad PLUS loan, you must determine the borrower’s Stafford loan eligibility and notify the borrower of the maximum Stafford loan amount he or she is eligible to receive. You must also provide a comparison of terms between Stafford and Grad PLUS regarding interest rates, when interest accrues, and when loans enter repayment.

After providing this comparison, the school must give the borrower an opportunity to request the maximum eligible Stafford loan amount.

Step 3:
The third-party processor parses the files and sends them either to the lender(s) or American Student Assistance, depending on your school’s profile (lender flow or guarantor flow).

Step 4:
The lender(s) or American Student Assistance processes the certifications.

Step 5:
The third-party processor disburses the funds to your school.

Step 6:
Your school disburses funds to the student borrower’s account.

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