How do you choose a Stafford Loan Lender?

[busdriver]

Like the title states, how do you choose a Stafford Loan lender and should i choose to receive an unsubsidized Stafford Loan?

As you can tell, I have no clue when it comes to this stuff...

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[Jack Worthing]

Like the title states, how do you choose a Stafford Loan lender and should i choose to receive an unsubsidized Stafford Loan?

As you can tell, I have no clue when it comes to this stuff...

Hopefully your school gave you a pamphlet on this. My school did and listed 3 preferred lenders that I could select online. I filled out an e-MPN (electronic Master Promissory Note) that sealed my committment to accept the Stafford Loan and accept its conditions.

Best person to ask about this is your dental school's Financial Aid advisor, or other people going to your school.

good luck

 

[spooky42]

You should take the unsubsidized loan of you need the money. I doubt you can find another place to give you loans for that good of an interest rate.

You can also go to each lender's website and check it out.

 

[trypmo]

I'd add that if there's a credit union -- as opposed to a bank -- on the list, consider borrowing from them, all other things being equal. To my experience, credit unions tend to be a bit less evil than banks, and I like to put my money where my mouth is by giving them my interest payments!

 

[Lila08]

How does one use a stafford loan to pay for living expenses if the lender disburses directly to the school? If anyone knows how the process works and could help me out it would be much appreciated.

 

[flighterdoc]

How does one use a stafford loan to pay for living expenses if the lender disburses directly to the school? If anyone knows how the process works and could help me out it would be much appreciated.

The school takes their share out and gives you a check for the rest (less a significant handling fee, like 3-5%).

 

[spooky42]

The school takes their share out and gives you a check for the rest (less a significant handling fee, like 3-5%).

Look for lendors that dont charge an origination fee.

 

[djsux]

there's probably two things you should look out for, from my limited knowledge:

Stafford loans are all provided by the gov't, so the interest is the same for all those borrowing. The interest rate adjusts each year in July I believe, and it is affected by the Fed's interest rate. So, yes, Alan Greenspan does affect your lives as broke and in debt dental students.

1. fees - there are some lenders that will not take out fees of your loan amount, so the amount that you borrow is the amount that you will get with your check when school starts.

2. incentive payment programs - a number of lenders also give you incentives once you start repayment of your loan, like reducing your loan's interest rate by 0.25 after making 25 consecutive payments, or when paying by automatic withdrawal.

I personally looked into all the lenders that my school provided to find the best fit for me. I went with Total Higher Education because they did not have fees and their payment program was the best.

GL with all this - financial aid is well worth knowing all you can about. I worked for a few years after graduating undergrad, so I know the pain of having to send out large chunks of your paycheck for that diploma.