In April, the University of Texas System ordered its campuses to remove the preferred lender lists from its financial aid Web sites after New York State Attorney General Andrew Cuomo alleged that a loan company may have given a UT-Austin official stock in exchange for getting on the school's preferred lender list, according to an article by the Associated Press.

For some schools, the preferred lender list is developed by the university and lists reliable student loan companies. It is available to guide students through the process of having to search for lenders.

Some members of the UT staff are under investigation for allegedly accepting gifts from lenders who were trying to win a spot on the school's preferred lender list, according to an article in the Austin American-Statesman.

Recently, some UT financial-aid officers admitted to accepting birthday cakes and lasagna dinners from loan companies, according to the AP.

SFA Financial Aid Director Mike O'Rear said "in no way" are the SFA financial aid office employees receiving "kick-backs" or gifts from lenders in exchange for being placed on the school's preferred lender list.

At SFA, those on the preferred lender list are chosen based on the following factors, according to the SFA financial aid Web site:

* Customer service to student borrowers.

* Borrower benefit programs and the savings provided during the origination and repayment process.

* Electronic process that speeds the loan processing.

"This year, we had 80-plus banks giving loans to our students," O'Rear said. "Students give us feedback, all the time, on their level of service with lending institutions."

O'Rear also said it is the student's responsibility to choose a lender.

Students may also choose lenders not listed on the preferred lender list, according to the SFA financial aid Web Site.

Currently, there are about 23 lenders included on the preferred lender list, O'Rear said, but students can choose any lender that participates in the Federal Family Education Loan Program.

Among the factors that the financial-aid office uses to determine preferred lenders are: responsiveness to students and positive/negative feedback from student and parent borrowers.

On the SFA financial-aid Web site, there is a section titled "Choosing a Lender" that gives students tips on the questions they should ask their potential lenders.

For example, it states that borrower benefit programs, which are programs that help reduce the cost of repaying loans, vary from lender to lender, and students need to check with lenders to compare the benefits. The Web site lists sample questions students should ask their potential lenders about the program, including an estimate of the number of students who qualify for the program.

"Everything we offer is geared toward the student experience," O'Rear said.