Overview
Northwest Education Loan Association® is a not-for-profit organization that supports the delivery of student aid and other services to encourage students to pursue education after high school. NELA offers free resources and expertise so students and their families can successfully plan and pay for higher education.
Since 1978, NELA has administered the Federal Family Education Loan Program, which provides low-cost loans to students and their parents. Working in partnership with schools, banks and other lending institutions, the company guarantees education loans against default. This guarantee provides insurance that the loans will be repaid and is important as it encourages financial institutions to lend money to students who often have no credit history or collateral.
NELA has guaranteed loans for more than 800,000 students and currently manages a loan portfolio in excess of $4.5 billion.
Headquartered in Seattle, Washington, NELA is the designated guarantor for the states of Washington and Idaho, and primarily serves the Western states.
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The Role of Guaranty Agencies in the Student Loan Process
When a student completes the Free Application for Federal Student Aid, the school uses the results to determine financial need and create a financial aid award. This may include a combination of scholarships, grants, work-study and loans.
If the college or university participates in the FFELP, student loans are made by banks or other lending institutions in partnership with a guaranty agency and the school. Under the FFELP, students choose the lender that they prefer to work with for their loans.
When a FFELP student loan is part of the financial aid award, loan information is sent to the lender chosen by the student. The lender then requests approval from a guaranty agency, such as NELA. By approving the lender's request, NELA commits to using its own resources, including the legal tools authorized by Congress, to help keep the loan current. In the event of default, NELA buys the loan from the lender and continues to pursue repayment. If NELA is unsuccessful in returning the loan to repayment in five years, the loan may be turned over to the federal government.
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Service and Support for Schools and Financial Institutions
NELA offers a variety of services to schools and lenders. These services include workshops, training seminars and updates on regulatory and legislative changes.
Schools and lenders also receive a full range of online student loan services, including loan application and disbursement services, loan counseling, and access to historical and current loan status.
NELA supports a broad range of schools, including trade or career schools, community colleges, four-year colleges and universities, and graduate and professional schools. In addition to administering FFELP, the company assists financial aid office staff by providing extensive services and free materials to make it easier to guide students and their parents through the financial aid process. NELA's training staff members are available to conduct federally mandated loan counseling sessions for student loan borrowers.
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Services for College Students
NELA guarantees loans for students attending schools throughout the Western states. Students must qualify for the loan program by applying for financial aid and cannot be in default on a previous federal student loan.
Since a student loan is often a college student's first loan experience, NELA provides informational publications, Web site resources and counseling services to help simplify complex student aid information. Students also can learn more about the FFELP loans available, as well as develop a better understanding of their rights and responsibilities as borrowers.
To help students understand how tuition and living costs, spending choices and student loan debt affect their total budget, NELA offers free classes about money management and credit to students on campuses throughout the region. In addition, the NELA Web site includes budgeting advice, money saving tips and calculators that guide money management and loan repayment decisions.
Once a student graduates or leaves school, loans enter the repayment period. NELA works with schools and lenders to ensure that student loan borrowers have easy-to-understand information about repayment plans and deferment and forbearance options.
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Outreach
NELA assists students and parents in planning for college and understanding financial aid by providing free information and classes. To increase access to education, the company also develops opportunities to reach out with information about college planning and supports initiatives that increase financial aid options such as scholarships.
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NELA CenterS for Student Success
In October 2003, NELA opened the NELA Center for Student Success in Seattle. This community-based college access center offers free resources, information and counseling about higher education options as well as a wide range of college and career exploration tools. In October 2004, NELA opened another center in Portland. The NELA Center for Student Success Web site provides assistance to those who aren't able to visit in person.
High school students and their parents also benefit from free classes and publications offered through the centers on a variety of college planning and financing topics. Seminars and materials on paying for college, saving for college and how to apply for financial aid are among the top choices.
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NELA Annual Report
Download a copy of NELA's 2009 annual report.
Download copies of NELA’s 2009 Annual Reports to the following four states that NELA serves as designated guarantor of federal education loans:
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