June 27, 2007
eSignature – what’s the difference between that and a real signature?
Here’s a question I hear a lot: “What is an eSignature?”
An eSignature (sometimes written ESignature, e-signature, or even eSig) is simply an”electronic signature”. It’s an electronic way of verifying that you are who you say you are, and that you agree to the transaction you are trying to complete.
Here at the Student Loan Network, we offer eSignature for consolidation, as do most lenders.
So what does this mean for you, the borrower?
It means that if you qualify for eSignature, you can electronically sign your application right away and have it go into processing immediately, instead of having the application mailed to you, you sign it, you mail it back to the company, etc…
How does it work?
When you lender determines that you are eligible, you’ll get an email with a link to click on and typically some sort of login information or passphrase. You click on the link and follow the directions on screen.
You’ll be asked to double-check your information such as name, address, references, etc. Often, you’ll also be asked to verify credit-based occurrences in your past, such as the name of the bank where you took out your last car loan, or the monthly payment on your mortgage. This is to make sure that no one else is trying to use your personal information fraudulently.
Lastly, you’ll be asked to read the terms and conditions of the loan and agree to them. Often, you’ll see check boxes saying you agree to the various terms. You’ll likely have to type in a sentence agreeing to it all or type you name in to finalize the process.
Yup, that’s it. It’s not rocket science, just a way of getting your loan into processing faster and at your convenience.