FFELP administration…step-by-step.
If you’re new to financial aid, here’s an easy way to get familiar with the various ways a student loan can be originated…whether it’s by American Student Assistance®, the lender or a third-party processor.
Select a Flow from the list below, and we’ll walk you through the process, step-by-step.
Close WindowGuarantor 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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
