This X12 Transaction Set contains the format and establishes the data contents of the Student Loan Guarantee Result Transaction Set (139) for use within the context of an Electronic Data Interchange (EDI) environment. The transaction set can be used by guarantee agencies (“guarantors”) to inform a lender, a school, or both as to the status of a student loan guarantee. The guarantee result information includes, but is not limited to, the conditions of approval or denial of a loan guarantee, notice of guarantee and loan disclosure terms, and information regarding previously guaranteed loans.
The student loan guarantee result is the second phase of the student loan application process. After the guarantor reviews the lender-approved student loan application, the agency issues a guarantee result. Subsequent lender processing of the student loan application is based on the information contained in the result transaction. After the lender receives a loan guarantee approval, the federally required loan disclosure is generated, and the loan proceeds are disbursed. If the lender receives a loan guarantee rejection, the lender may correct and resubmit the loan application, or the application may remain in a rejected status.