Current through Register Vol. 54, No. 21, May 25, 2024
Section 121.61 - Submission and processing of applications(a)Applicant. A student desiring to secure a Federal Stafford Loan shall obtain from a participating lender, a participating school or Agency a loan application packet containing the application/promissory note form for the Federal Stafford Loan Program. The information provided on the form will be used to determine the eligibility of the applicant to receive a Federal Stafford Loan. The applicant shall complete the loan application, which includes the affidavit in which the applicant agrees to use the loan proceeds solely for educational expenses. The applicant shall also read, sign and date the promissory note that is part of the loan application form. After completing the loan application, including the promissory note, the applicant shall retain a copy of the form and forward the remaining copies of these forms as referenced on the form.(b)Educational institution. The institution shall certify the loan application according to instructions provided by the Agency.(c)Processing by the Agency . The Agency will check the application/promissory note form for completeness. If not complete, the Agency will obtain from the applicant the missing data items.(d)Completion of processing. Upon receipt of missing information, the Agency will complete the processing of the loan application and determine the amount of loan assistance the applicant is entitled to obtain. The Agency will then inform the lender of the amount of the guaranty by sending the lender a Loan Guaranty Notice and Disclosure Statement.(e)Action by lender. The lender shall provide the applicant with a copy of the Loan Guaranty Notice and Disclosure Statement and disburse the funds by means of a check or electronic funds transfer. If the lender does not wish to make the loan, the lender shall mark denied on the Loan Guaranty Notice and Disclosure Statement or report the denial by the computer terminal. An adverse action notice shall be provided to the borrower by the lender if loan assistance is denied.The provisions of this § 121.61 adopted February 27, 1969; amended November 19, 1976, effective 11/20/1976, 6 Pa.B. 2907; amended July 3, 1980, effective 7/5/1980, 10 Pa.B. 2874; amended June 19, 1981, effective 7/1/1981, 11 Pa.B. 2117; amended March 26, 1982, effective 3/27/1982, 12 Pa.B. 1043; amended January 16, 1987, effective 1/17/1987, 17 Pa.B. 250; amended October 16, 1987, effective 10/17/1987, 17 Pa.B. 4120; amended July 12, 1996, effective 7/13/1996, 26 Pa.B. 3321.The provisions of this § 121.61 amended under section 4 of the act of August 7, 1963 (P. L. 549, No. 290) (24 P. S. § 5104); section 1 of the act of January 25, 1966 (P. L. 1546, No. 541) (24 P. S. § 5151); the act of July 18, 1974 (P. L. 483, No. 174) (24 P. S. §§ 5181-5189); the act of July 1, 1988 (P. L. 1259, No. 155) (24 P. S. §§ 5191-5197); and the act of June 26, 1992 (P. L. 322, No. 64) (24 P. S. §§ 5198.1-5198.7).