Private student loan lender

Selecting a student loan provider is an important decision for the borrower, as it can be for the school the student is attending. Not all lenders are alike, as you already know from experience. So, what are some of the factors to consider? The following questions may be helpful to you and to your students in evaluating student loan providers.

* Are the origination fees discounted on Federal Stafford Loans?

Lenders that discount the allowable 3% origination fee on Federal Stafford Loans permit students to receive more of the funds they're borrowing. At a time when tuition and other costs are rising rapidly, this can be important.

* Are payment incentives offered to borrowers?

Lenders offering payment incentives to borrowers provide a financial benefit that can reduce the cost of borrowing. The most common programs offer interest rate reductions to borrowers who make their payments electronically through auto-debit and/or to those who make scheduled payments on time.

* Are loans available for the full cost of education?

If the cost of attendance exceeds Federal Stafford Loan limits, are private loan funds also available from the same lender? If so, will students be able to borrow all the funds they need from the same lender in order to complete their degree program?

* Are loans available for all types of student borrowers?

Lenders offering a full complement of federal and private education loans for all types of students and their families can be an efficient partner for your institution in meeting the needs of all students--full-time, part-time, international, and those with damaged credit.

For example, if the lender offers a "sponsor" loan for parents or others to borrow on behalf of a student, this loan option can help students who have credit or other loan eligibility problems obtain the financing they need.

* Are borrowers able to apply for loans and view their account information online?

A full suite of electronic services to borrowers via the Internet, such as online applications, e-signature, instant credit decisions, and online access to accounts, provides students with an easier and more efficient way to manage all the transactions associated with applying for, receiving, and repaying education loans. This also can make it easier for school personnel serving these students.

* Are processing options for schools and borrowers flexible and efficient?

Options such as "paperless processing," overnight processing of applications and disbursement of funds, university-wide solutions, and the most current technologies, such as e-signature and online loan certification, can ensure that schools and students receive loan funds as quickly and efficiently as possible.

* Are customer service representatives readily available when needed?

How quickly are phones answered? Are customer service hours convenient for your staff? Does the lender designate customer service representatives to work directly with each school? If so, your staff will have easy access to help when needed, from a person who understands the specific needs of the institution.

* Are debt management and other borrower education services available?

An assortment of information in a variety of formats can help borrowers manage debt and achieve their educational and financial goals. In addition, online and personalized loan counseling services offered by a lender can help the student and assist the institution in meeting its regulatory obligations in an efficient and effective manner.

In general, low cost, easy access, flexible options, and quality service are key elements to consider in selecting a lender. In answering the questions posed here, you should be able to assess how well a lender will meet the needs of your students and your institution.