New Article -- Choosing a Lender for Loan Consolidation

[zipmedic]

Hello! A new article has been posted to the SDN Front Page - Choosing a Lender for Loan Consolidation. Here is a brief excerpt from the article:

For non-Direct schools you have to choose from the over 3000 lenders that are capable of issuing federally backed loans. This can be a daunting task but there are a few things that can narrow them down.

• If your school still has a preferred lender list, start there. Ask the financial aid office how they screened the lenders on the list. Do they have an arrangement with them or were they chosen by performance? Some lenders will set up a fast-track system with schools to make the loan process easier on them so they are put on the preferred list. But that doesn't benefit the student in any way. Remember: you are not required to choose a lender from this list. Federal law guarantees you the right to use any lender you wish, but your school may have some insight on the lenders on their list.
• Talk to your fellow students. Who did they use and were they happy with them?
• Use the Internet – research any lenders that look promising.
• Don't forget your credit union if you or your parents are members.
• What origination fees do you have to pay?
• Do they offer deferral throughout residency?
• How easy is the application process? Can you apply online? How long do you have to wait to find out if you are approved?

Thanks,
zipmedic
Editor-in-Chief
SDN Front Page

[AMDFAO]

Not all Direct Loan schools are prohibited from certifying a FFEL Stafford from any one of the 3000 lenders a student may choose from. I would encourage those at Direct Loan schools to contact their FA office to ask if it would be possible for them to certify a Stafford from a FFELP lender.