What is an Application and Solicitation Disclosure?

An Application and Solicitation Disclosure is a document provided to prospective college loan borrowers by private lenders that outlines the basic information about the terms and total cost associated with each of the lender's loans. The document includes college loan facts you need to know, such as:

• The range of potential interest rates, and whether the rate will be fixed or variable
• Any fees associated with the loan
• The available repayment options
• Eligibility criteria

Every Application and Solicitation Disclosure includes an example showing the total cost of a lender's loan based on a certain amount borrowed and the terms of repayment. It also provides a comparison of potential federal loan options and the next steps to borrowing a college loan.

By way of background, the Application and Solicitation Disclosure is a required document of all private lenders, established by the Truth in Lending Act, which served to fulfill conditions of the Higher Education Opportunity Act (HEOA) of 2008. All lenders are required to post Application and Solicitation Disclosures on or with their loan applications.

Why does this matter to you?

Application and Solicitation Disclosures are required by lenders like us to help you (the borrower) make an educated decision and and understand the details of your college loan. These documents allow you to compare apples to apples in researching college loans, and give you an idea of the total cost of a loan before you borrow it, including what you will be expected to pay, and when.

MEFA's Application and Solicitation Disclosures are located right on our website for both undergraduate and graduate loans. You should make sure to review the Application and Solicitation Disclosure of any private loan before borrowing.

Learn more about borrowing student loans