An Explanation of Student Loan Corporations
Types of Lending Sources That Help Finance Your College Education
A wide spectrum of government, private, and educational lenders acts as the financial backbone that provides support for front-line student loan lenders. Collectively this group is often referred to as student loan corporations.
Generic Student Loan Corporations
Generally speaking a student loan corporation is a comprehensive financial aid services company that manages loan applications and client accounts. Many student loan corporations act as municipal services specifically attached to state-funded loan programs.
For example, the Kentucky Higher Education Student Loan Corporation is one example of a non-profit student loan processing service that works directly for the Kentucky state government. Texas and South Carolina also have their own student loan corporations.
General student loan corporations package in other services such as: information related to 529 savings plans, advice on choosing and applying for various types of student loans, important loan repayment information, how to leverage your loan interest for valuable student loan tax credits, and even options for applying for student consolidation loans.
Function of a Student Loan Corporation
A student loan corporation deals in the business end of college finance. Consider the immense undertaking for each college, university or bank in managing their student loans. The technological demands alone have made it necessary to outsource data management and critical account services to specialized corporations. The business of student loans is a specialized segment of the lending and banking industry. For this reason, it makes sense that most private banks have even become involved in the student loan business. This then is what a typical student loan corporation does, manages various back-end functions directly and indirectly related to your student loans.
While you are attending college your loan typically sits, waiting for you to graduate and the date of loan repayment to commence. Once you begin paying for your college loans these are examples of the common services you may expect from your student loan corporation:
- Track your monthly loan payments.
- Make online payments.
- Consolidate multiple student loans.
- Find information on and/or apply for loan deferment or hardship status.
This type of corporation may manage almost every type of financial service you might need in regards to your student loan account repayment.
THE Student Loan Corporation
The Student Loan Corporation is a subsidiary of Citibank. The SLC is one of the more well-known educational lending institutions in the country. Along with their affiliation with Citibank, the Student Loan Corporation manages the loan accounts of millions of students and thousands of educational institutions.
A few other educational financial management companies exist with “student loan corporation” in their name. Most perform very similar functions to what we outlined above, but often in collaboration with a particular lender or set of lenders.
