There are many college financing options, and many lenders out there vying for the attention of consumers. As you try to select the loan or loans that best meet your needs, it is critical to be a “savvy shopper.”

Compare these items:

• Interest rates and terms. Federal programs are generally very similar. However, some lenders do offer discounts. Private programs can vary significantly.
• Borrower benefits, including those for paying on time and for making loan payments electronically.
• Repayment plans offered.
• Levels of customer service offered.

Questions to ask lenders:

• How long have you been in student loans?
  
• Are you a financially secure company?
  
• Who services your loans?
  
• Who guarantees your loans?
  
• Who performs customer service for you—what training or qualifications do they have?
  
• Do you certify your compliance with applicable regulations? Where? May I get a copy?
  
• Do you charge an origination fee?
  
• Do you charge a default aversion fee?
  
• If you rebate the loan fees, when and based on what principal amount?
  
• How do I earn any interest rate or fee reductions?
  
• When do I earn any interest rate or fee reductions?
• Is your rate reduction immediate?
• Is your fee reduction immediate?
  
• Do I have to do anything to keep my benefits?
  
• Do I lose any benefits if I make one late payment?
  
• Do I lose those benefits forever?
  
• What happens to my eligibility for benefits if I consolidate my loans?
  
• Do I have to repay earned benefits if I consolidate my loans with another lender?
  
• Where do you disclose the terms and conditions for your loan discounts and benefits?
• Are your terms and conditions offered in writing?
• Can I access and update my account online?

back to top^