$ Lenders/Loans List: Who you chose & Why?

- Stafford subsidized/unsubsidized
- ASAP/Union Bank and Trust
- they were listed as a preferred lender by my school and I liked some incentives they had (Zero origination fee and default reduction fee), 3.33% reduction on principal after 30 initial on-time payments, 1% interest rate reduction for auto-debit payments)
- ASAP/Union Bank and Trust website
- University of Colorado

Deciding the right lender for you basically boils down to which perks benefit you and which fine print details hurt you the least. You want to choose the lenders that have perks that represent your situation four years from now. If you plan to have many monthly commitments, then its better to spread the benefits over time. If you plan to make major changes to your lifestyle four years from now, like getting married or something, you probably want to slant toward the instant gratification benefits.

Hello,

I will be attending Texas Tech SOP and below is a cut and paste of the info I posted on the Texas Tech forum. Hope this helps!



Yep, we are going to be knee deep in debt, that's why I wanted to find a lender with the best incentive so I can save a few bucks After spending about an hour online and on the phone with lenders, here's what I found out. I hope this helps someone Disclaimer: read at your own risk! I am not a financial guru and am only regurgitating info

The best way to compare prices on a student loan is to match up the interest rates with all other factors held equal. But when lenders offer different types of discounts at different points in the repayment process, comparisons aren’t easy.

How do you compare a fee reduction with a lower interest rate? What about an interest rate reduction that doesn’t kick in until the fifth year of the loan?

The table below shows how to compare some typical types of discounts offered by companies that provide federal student loans. The most common federal student loans (Stafford loans) have a fixed 6.8% interest rate before any discount.

Discount Offered Equivalent Value
1% reduction of interest rate at start of loan
1.00%
1% lower interest rate at start of repayment (after 4 years of interest accrues without discount while student is in school)
0.78%
1% lower interest rate after 48 payments (see warning)
0.33%
1% reduction in fees charged to the borrower
0.23%
1% reduction of principal after 48 payments (see warning)
0.12%


Bank of America: 0.25% reduction with ACH payment, 2% reduction after 36 months of consecutive on time payments, $500 balance forgiveness

Chase: Zero origination fees, 0.60% rate reduction for ACH payment, 1% rate reduction after 12 months of consecutive on time payments, 1% rate reduction after 36 months of consecutive on time payments

Sallie Mae: Zero origination fees, 2% rate reduction after 24 months of consecutive on time payments, 1% rate reduction after 48 months of consecutive on time payments

College Board: 3.3% rate reduction after 33 months of consecutive on time payments, zero origination fees

Best incentive, IMHO, was with University Federal Credit Union. Here's the link to their terms.... and no I am not associated with any of these financial institutions

http://www.ufcu.org/accounts/loans/education/index.php

Stafford-Unsubsidized and Subsidized loans through salliemae $33000

Gradplus loan through salliemae $7500

www.amsweb.com

Things to consider for stafford:O% origination fee, 0% default fee, 1.50% loan credit after first time payment, another 1.5% after first 12 on time payments. 1st yr of 1st unsub loan is interest free. Lastly, .50% reduction for auto-debit.

Things to consider for gradplus: 3% origination fee, 0% default fee, .25 % point interest rate reduction after 1st disbursement. 1% point interest reduction after 1st on time payment, .50 point interest rate reduction for auto debit and 3% loan credit after 36 on time payments.

The process has been relatively simple with salliemae. In about an hour I had completed both MPN (master promissary notes)for both the stafford and grad plus which I was immediatly approved. I would recommend them if your school uses them.
I will be attending Northeastern Ohio College of Medicine and Pharmacy, for class of 2011.

ShaolinRx,

hey there. I went with Uheaa too🙂

See you in two weeks at 8:45am at the SJUSN🙂

Moved per OPs request.