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Financial Aid
Choosing a Lender
Primary Lenders
For Students and Parents: Best Practices on Choosing Your Lender
When selecting a student loan provider, students and parents have
a wide range of choices. Colleges and universities frequently
develop a list of preferred lenders based on a careful evaluation
of offerings, quality, price and service. A school's lender list
can be a great starting point when looking for education funding
options. It is always recommended that students and parents also
do their own research regarding student loan lenders. The choice
of lender is always up to you.
Listed below are some of the criteria that you can use to select
the lender that best meets your unique needs.
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Best value & benefits to borrowers
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Does the lender offer to pay fees on the student’s
behalf?
Does the lender offer competitive rates and pricing?
Does the lender offer interest rate reductions and rebates?
How easy is it for students to earn and keep rate reductions
and rebates?
Does the lender have a minimum income requirement?
Does the lender require repayment while in school? |
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Customer service investment
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Does the lender recommend that students maximize
their use of free aid and
Federal loans before taking a private loan?
Can students and parents apply for loans online?
Does the lender offer life of loan servicing?
How convenient are the lender’s call center hours?
Does the lender offer Spanish-language support?
Can students access and manage their account online, 24/7? |
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Robust repayment options
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Does the lender provide combined billing for
both federal and private loans?
Does the lender provide counseling on deferment and forbearance
options?
Are repayment calculators and other online tools available?
Does the lender provide a variety of federal and private loan
repayment
solutions?
Does the lender offer loan consolidation options?
Does the lender educate borrowers about effective debt management? |
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Experience & longevity
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Is the lender a well-known, reputable company?
What is the lender’s track record in the industry?
Is the company’s focus on student loans?
How many customers have loans with this lender?
Is the lender financially sound and strong? |
Last updated
July 1, 2008 11:54 AM
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