RFPs are not required
Schools are required to document the process by which they selected the lenders on their list, including the criteria used in compiling the list and the relative importance of the criteria.
Schools are not required to issue RFPs to justify their lender selection.
Straight Talk includes information for schools to help them evaluate lenders:
Consider postponing the RFP/RFI process
On September 27, President Bush signed The College Cost Reduction and Access Act of 2007. The act included lender and guarantor cuts that became effective on October 1, 2007.
While some lenders have announced reduced benefits or continuation of existing benefits, many lenders have not finalized their benefit strategy. Similarly, many guarantors have not announced whether they will pay for the federal default fee for Academic Year 2008/2009. As a result, it may be prudent for schools to wait to issue RFPs if they are choosing to pursue this route until December 2007–January 2008.
Gain campus-wide consensus
When developing the RFP process, consider reaching out to other departments on campus. This will help ensure buy in from them on the selection.
Be concise about the questions you ask
Ideally, many schools would like to receive a short, concise document summarizing a lender’s products and services. This is directly driven by the quality and number of questions asked by the school. In an effort to be thorough and comprehensive, the school may receive an extremely lengthy document which will make the review and evaluation process cumbersome.
We recommend that a school first determine what is the most important information to be obtained and compared and focus on these few issues.
Provide lenders with adequate time to respond
Lenders receive RFP/RFIs from many schools. In order to be thorough in answering your unique questions, please provide at least 30 to 45 days for your response deadline whenever possible.