How to Choose a Lender
Choose Your Lender Wisely
You will know them for more than a decade.
If you are ready to complete the financial aid process and apply for a Federal Stafford, GradPlus Loan or Private Alternative Loan -- click Your Next Step....
? - Questions you should ask the lender - ?
It is important that you have all the information you need to make an informed decision when selecting a lender for your education loans. There are many lenders to choose from and you want to make sure you select the lender that works best for you. Following are a few questions you should ask your lender whether borrowing through the Federal Stafford Loan, Federal Grad-Plus Loan or Private Alternative Loan programs.
1. Do they deduct fees up front?
a. If yes, how much?
2. What is the interest rate? How often is the interest rate adjusted?
a. Federal regulations set all Stafford Loan rates at fixed 6.8% and Grad-Plus loan fixed at 8.5% for the life of the loan.
b. Some lenders may offer interest rate reductions during repayment.
c. Private loan interest rates are generally variable and adjusted quarterly.
3. How often do they capitalize the interest?
a. Federal Stafford & Grad-Plus Loan interest is capitalized one time at the point of repayment.
b. Private Loan interest capitalization varies; some monthly, quarterly, annually or at repayment.
4. Are there any fees added on at repayment?
5. How much will my monthly payments be?
6. How long do I have to repay the loan?
a. Federal Stafford and Grad-Plus Loans have a standard repayment term of 10-years.
b. Private loan repayment terms vary.
7. Are there penalties for early repayment?
a. Federal Stafford & Grad-Plus loans – no penalties.
b. Private loans may vary
8. What type of repayment benefits do they offer?
a. If I consolidate do I still qualify for the repayment benefits?
b. Do I have to sign up for electronic billing/payments to receive benefits?
9. Do they offer an extended repayment plan?
a. If I extend my repayment plan do I still qualify for the repayment benefits?
10. What if I miss a payment?
a. When do you consider a payment late?
b. Will I lose my benefits?
c. Are there penalty fees? When are they charged?
d. How can I regain my benefits?
11. What is the total amount I will repay including principle and interest?
12. What if I pass away during repayment; what happens to my loan debt?
a. Federal Stafford and Grad-Plus loans are forgiven
b. Private Loans policies may vary-check with your lender
13. How would you rate their customer service?
a. Online account access?
b. Phone service?
All Federal Stafford and Grad-Plus Loans at Pacifica will be guaranteed through EdFUND, unless otherwise requested. You must select a lender from which to borrow your Stafford Loans. Be sure to mark your lender of choice on the Award Letter.
Click Your Next Step... to continue the financial aid process and select a lender from our lender list.
|
