What is a financial aid reference?

Giovanna Sherlin: After they graduate, students typically move and they rarely think to update their contact information with the lender. The application for a Stafford Loan asks for two references who might know where you are in the event that they try to contact you and are unable to. Being able to locate you means that if it appears that you're having trouble paying your loan, they can get contact you and offer help before you end up in default. (Of course, it also helps with skip tracing if you've left town and are intentionally avoiding paying your loans. These references are contact references only--they are not co-signers and are not obligated in any way to repay your loan, even if you default on it....Show more

Penelope Armond: The reference is a close friend or family member you have known for however many years they require. Being listed does not obligate them to anything. The information is only used if you default on the loan. Since you are young ! and most likely going to move repeatedly, these people should know your current address and phone number in case your load goes to collections.