You and your students can count on access group; choosing a student loan provider: questions to ask.Choosing a Student Loan Provider: Questions to Ask Selecting a student loan provider is an important decision for the borrower, as well as the school the student is attending. As you already know from experience, not all lenders are alike. 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 A charge imposed by a lending institution or a bank for the service of processing a loan. For example, a bank might charge an individual who has applied for a student loan an origination fee of one percent for processing the application and granting the loan. discounted on Federal Stafford Loans A Stafford Loan is a student loan offered to eligible students enrolled in American institutions of higher education to help finance their education. The terms of the loans are described in Title IV of the Higher Education Act of 1965 (with subsequent amendments), which guarantees ? Lenders that discount the allowable 3% origination fee on Federal Stafford Loans permit students to receive more of the funds they're they're Contraction of they are. they're be borrowing. At a time when tuition For tuition fees in the United Kingdom, see . Tuition means instruction, teaching or a fee charged for educational instruction especially at a formal institution of learning or by a private tutor usually in the form of one-to-one tuition. and other costs are rising rapidly, this can help students because they receive 100% of what they borrow. * Are payment incentives offered to borrowers? Lenders who offer 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 and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. to those who make scheduled payments on time. But, borrowers need to read all the fine print about these programs. Current industry experience is that only about 10-15 percent of all borrowers ultimately qualify for the on-time incentives. * 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 to complete their degree program from the same lender? * Are loans available for all types of student borrowers? A lender who offers 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 part-time adj. For or during less than the customary or standard time: a part-time job. part , 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 Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the , 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 tot, 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 DISBURSEMENT. Literally, to take money out of a purse. Figuratively, to pay out money; to expend money; and sometimes it signifies to advance money. 2. of funds, university-wide solutions, and the most current technologies (e-signature and online loan certification, for example) 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 des·ig·nate tr.v. des·ig·nat·ed, des·ig·nat·ing, des·ig·nates 1. To indicate or specify; point out. 2. To give a name or title to; characterize. 3. 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 your institution. * Are debt management and other borrower education services available? An assortment assortment /as·sort·ment/ (ah-sort´ment) the random distribution of nonhomologous chromosomes to daughter cells in metaphase of the first meiotic division. as·sort·ment n. of information in a variety of formats can help borrowers manage debt and achieve their education and financial goals. In addition, online and personalized per·son·al·ize tr.v. per·son·al·ized, per·son·al·iz·ing, per·son·al·iz·es 1. To take (a general remark or characterization) in a personal manner. 2. To attribute human or personal qualities to; personify. loan counseling services offered by a lender can help the student and assist the institution in meeting its regulatory loan counseling 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. |
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