Good loan lenders

[caladan]

Hi,

I'm an undergrad and I'm trying to decide who to get my loans from. Mostly interested in Stafford loans but would also take out minimal private loans.

So, which are some good companies/agencies to go with? Seems that some people like Total Higher Ed (their repayment benefits sound nice) and Nelnet (I can't find their benefits online). I looked at Citibank/Chase/BankofA and there seem to be so many conditions to get loan repayment benefits (as in interest/principal discounts) that I'd rather not deal with them. My school doesn't really offer much help.

Has anyone used Mohela? They claim that they give 2% interest discount which is nice but they also charge orig fees for Staffords (total fees of 3% of principal)

If it makes a difference, I'm a resident of and will be going to school in NY.

Please also let me know if you've found your current loan company easy to deal with when it comes to deferments.

Thank you much

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[Doctor Bagel]

Unfortunately I don't think there's an objective compilation out there with all this data. Personally I decided to go with T.H.E. primarily because I liked how they didn't hinge their repayment incentives on making x many on time payments. I've already lost an incentive that way for prior loans, and while I'm pretty good at paying things, I have been known to occasionally make payments one to two days late -- easy to do when your life gets hectic.

My experience with them has been entirely positive, but I haven't needed a lot of extra service. I've called them a few times, and it's nice to note that you can easily get to speak with a real person instead of getting stuck in phone tree hell.

Anyway, I like 'em, but I'm sure there are other lenders that are as good or even better.

 

[caladan]

Thanks for the response Doc. I think I'll stick with Mohela for the fed loans and go with T.H.E. for the privates. Now if only my school saw what a wonderful person I am and gave me more scholarship money...

 

[emeddo]

Might want to do a little google news search on MOHELA before you decide to stick with them. Seems like they are in a very unstable position at the moment.

http://news.google.com/news?hl=en&q=mohela&um=1&sa=N&tab=wn

 

[AMDFAO]

As an undergrad intent on going to med school for 4 years and then onto a residency for 4 more the first question out of your mouth when considering a private loan should be: is there a limit in how long I may defer these loans if I am enrolled in school or during a residency? Currently I have 2 of my DMD kids who are in repayment because the loans specified that repayment would begin "x" number of years after the money was disbursed or they graduated regardless of if they were in school now. I was the fortunate soul who read the notes for the when they started to let them in on it and not their undegrad school... shame on that FA office.
Further, if any of those loans have a repayment incentive based on timely repayments it becomes even more important you understand when repayment will begin. A lender may decide that you can receive a forbearance (deferment means the loan is not legally in repayment and you are not required to pay whereas a forbearance is the loan is legally in repayment and the lender is allowing you to not make payments-- it is totally their decision to grant any forbearance since the loan note --think of it as a contract between you and a lender-- has specific terms regarding granting deferments and the total time any loan may be deferred. If you could not defer but could be granted a forbearance, would the lender consider it late or missed payments? If so, have you just lost the benefit you chose that lender so as to receive it later on? Ask specific questions and read the actual loan note (contract) you are signing and ask lots of questions before you sign it. It might even be worth it to ask your FA person to read it over with you and expalin some of the language.
Good luck and don't borrow crazy money and then spend it at the Gap.