It is very important that you carefully consider the reputation
and integrity of the many lenders and the educational loan programs
they offer to determine which is best for you. If you feel you may
need alternative loan funding, you will want to ensure that your
lender offers a competive alternative loan program in addition to
the stafford loan and PLUS loan programs. You will want to choose a
responsible lender with a track record that demonstrates its
commitment to students and their education.
Consider the following when selecting a
lender:
Value and Benefits
- Does the lender offer to pay fees on your behalf?
- Does the lender offer competive rates and pricing?
- Does the lender offer interest rate reductions and
rebates?
- How easy is it for you to earn and keep rate reductions &
rebates?
Fees
- Does the lender charge fees?
- Are the fees deducted from the amount you are borrowing?
- Are the fees based on a percentage or your loan or a flat
fee?
- Are there any service charges over the life of the loan?
- Ask if late fees are charged and if so, how are they
assessed?
Interest Rates
- Is the interest rate of the loan fixed or variable?
- If the interest rate is variable, how often does the rate
change?
- How is the interest rate determined?
- What is the estimate of total interest charged over the life
of the loan?
- Are there any periods where interest isn't charged?
Repayment Options
- Does the lender provide combined billing for federal &
private loans?
- Does the lender provide a variety of repayment options?
- Does the lender provide counseling on deferment &
forbearance options?
- Does the lender educate borrowers about effective debt
management?
Customer Service
- Does the lender recommend that students maximize their use of
free aid and federal loan eligibility prior to approving a
private alternative loan?
- Does the lender offer life-of-loan servicing?
- Can you apply on-line and do you have 24/7 access?
- Does the lender offer on-line access to your account
information?
- Does the lender offer toll-free customer service and if so,
what hours are knowledgeable representatives available to answer
your questions?
- Will the lender accept e-mail and fax inquiries? If so, how
long is the average response time?
Stafford Loan lender
list