Blanket Guarantee Streamlines Loan Delivery for Students in the Northwest
SEATTLE — October 24, 2000
College students in Washington, Oregon and Idaho can now receive same-day approval and access to loan funds thanks to a partnership between Northwest Education Loan Association (NELA) and Wells Fargo Education Financial Services (EFS). Blanket guarantee service streamlines loan processing and enables quicker, more efficient delivery of loan funds to students at colleges approved by the Department of Education.
"We're pleased to offer this additional service to schools and students," said Tony Bright, NELA president and CEO. "Providing blanket guarantee allows funds to be disbursed sooner by cutting down on the steps necessary to approve the loan - clearly a benefit to both the schools and the students."
"The blanket guarantee makes same-day delivery of loan funds possible," said Jon Veenis, president of Wells Fargo EFS. "We can provide education financing for our customers more quickly and conveniently than ever before."
Wells Fargo EFS will be authorized to release Stafford and PLUS loan funds to borrowers before receiving the official notice of guarantee from NELA. Blanket guarantee offers many advantages to schools and lenders by eliminating the delays caused while waiting for verification of student information. NELA continues to seek partnerships with additional lenders interested in blanket guarantee.
Wells Fargo Education Financial Services is a subsidiary of Wells Fargo & Company, a diversified financial services company with $234 billion in assets, providing banking, insurance, investments, mortgage and consumer finance from over 5,300 stores and the Internet (www.wellsfargo.com ) across North America and elsewhere internationally. Wells Fargo is the nation's leading student loan provider, serving 700,000 student and family customers in all 50 states with the most extensive product offering in the industry.
Northwest Education Loan Association (NELA) is a guaranty agency in the Federal Family Education Loan Program. This not-for-profit guaranty agency works in partnership with schools, banks and other lending institutions to help students continue their education. NELA administers Federal Family Education Loan Programs (FFELP) and guarantees the loans against default. Each year, NELA guarantees over $300 million in education loans for students in the Western states. It also assists schools and banks by providing electronic services, training, technical support and educational publications. NELA is the designated guarantor for the states of Washington and Idaho, and its primary area of service is the Western states. Incorporated in 1978, the agency is headquartered in Seattle, Washington.