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All lenders holding and administering ISAC-guaranteed loans must have received approval from the U.S. Department of Education (ED) and have in place a Lender Agreement or Holder Agreement with ISAC, as required by ISAC Rules, Sections 2720.20 and 2720.35.
The Common Manual provides additional information concerning federal lender participation. ISAC Rules, Section 2720.20 provide the requirements to administer ISAC-guaranteed loans, including that lenders must exchange loan data with ISAC electronically. ISAC conducts compliance reviews to determine if approved lenders/holders are complying with federal regulations, statutes and rules.
ISAC-approved lenders/holders are also required to adhere to ISAC's one-holder requirement (ISAC Rules, Section 2720.40). To execute a Holder Agreement with ISAC, follow the instructions included in the Holder Agreement Packet, making sure to submit all required documentation. When the approval process is complete, a signed original agreement will be returned to the holder, with a letter of approval from ISAC. If you have any questions about the process, contact ISAC at isac.lenderservices@isac.illinois.gov.
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