Do you have an official reference? I would believe that persons in the industry may use slang terms, but technically it would be incorrect to refer to a bank as

Do you have an official reference? I would believe that persons in the industry may use slang terms, but technically it would be incorrect to refer to a bank as a lender in most 'loans' they perform. If you check the Promissory Notes, I'd guess they probably don't say "lender", except as possibly an alias for a definition that is not equivalent to the standard definition -- wherein, one forgoes actual physical property (cash, for example) for another's use; with the expectation that the property will be returned at some point (possibly with some form of payment to compensate for the real loss of property). Edit: Do you think Wells Fargo has myriad $100k bundles just sitting around waiting for students to take? I don't think so. They use their power to create new money, rather than loan out the entire principal from their reserves.