What is the best student loan provider to choose from for college as a freshman undergraduate?
October 15, 2010 by admin
Filed under Student loans
Ex. Wells Fargo. What are differences to look for in choosing a loan provider? Does anybody have much experience in this region?
Look for a credit union they do loan forgiveness (payoff after it goes below 600) and lower interest rates. Wells Fargo sucks.
Look at their interest rate. Make sure it is a fixed interest rate. Check out what happens to the interest rate if (when) they sell your loan to another party.
I went with CitiBank. They had the lowest interest rate at the time. They then sold my loan to another bank and the interest rate went up. I then decided to find another loan company to buy off my loan from the people Citi sold the loan to. Now, I’ve got a fixed interest rate of 3. 8% so it won’t ever go up and if they sell it, the new “owners” of my debt will have to keep it at that percentage rate.
The answer above was contained very good information, but please remember your interest rate will be determined by your credit score, and if applicable, your co-signer credit score.
Most student loans carry a fixed interest rate, so definitely make sure you get it locked in. Then you want to take it a step further and look at the borrower benefits. If you use automatic payment, some lenders will reduce your interest rate. Some lenders offer a percentage rebate option after a set amount of acceptable payments. If you are going to have a co signer, make sure you get the option to have your credit evaluated and have your cosigner removed at the end of 2 years into repayment. Also, talk to your FAO on campus and see if your school has any preferred lenders. This means, for attending that school, and using that company, you are eligible to receive even more benefits, or better benefits than others.
I hope this helps!
Try some credit union they even forgive the loans sometime or someone with low interest around 4-7% will be good one. But situation may prevent you. Try to choose from BBB registered companies.
http://www. studenthut. blogspot. com
and
http://www. easystudentloan. blogspot. com
Anton, student loan can be divided into two major categories: Federal Loans & Private Loans. Now it depends, which type of loan you particularly go for. People often opt for federal loan initially & I would even suggest the same, as federal loan has lower interest rate (8% max) as compared to the private lenders who can charge high interest rate as per their will. FAFSA, Stafford Loan, Sallie Mae are some of the popular federal loan offered in US.
Learn more on Student Loan & Student Loan Consolidation:
http://www. studentloaninfo. org/
http://www. 4studentloan. net/