Loan question and choosing a lender...

[spo01]

I was wondering who you pod students have choosen as a lender? I have a 'recommended list' but it has 14 different lenders and am having a hard time deciding the best one.

Also, how did you incorporate in your scholarship if you got one? Did you simply just subtract the amount from the estimated yearly expense or are you still taking out the yearly max?

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[PJAG]

After researching my options, I chose Citibank as my lender. It took me some time to narrow down my choices and it’s up to you to determine the loan-criteria that fits your needs as a student. Citibank offered interest rate reduction opportunities, opportunities to earn your automatic rate reduction if you miss a payment, and zero payments for the last 6 months of your loan.

For the scholarship incorporation, I simply subtracted my scholarship money from the estimated yearly expenses. My school sent me the “recommended” amounts of loans for my academic 1st year (including the scholarship money). I also found this link useful in determining the amount of my future loan payments: http://www.edfund.org//real/private_loans/Main/Loan%20Payment%20Calculator.xls

I also think that responses from current residents would be more useful in determining what lenders are good and what factors are essential for loans. Opinions on loans from residents can be advantageous for future pod students.

 

[lojick]

a few months ago, i had the uncomfortable task of choosing a lender for my student loan. financial aid reps don't give you a straight answer on whose the best; legally, i don't believe they can stear you towards/away from any lender. they can tell you which are the most popular among the students though. for the most part, the differences between lenders are small, so research the lenders that work in your program. they usually have a website. look for a lender that does not have fees(origination fees, etc...) and that offers the highest interest reductions and benefits during repayment.

now for your other question. you cannot borrow more than what your school determines, and if you receive a scholarship (most pod schools give a merit to all entering freshman) that amount is subtracted from the max you can borrow.
ex: annual budget @ temple=~51K, merit scholarship=12k
51k-12k = 39k < max borrowing limit
the max borrowing limit is the default unless you choose to take out less.all the work is done for you. all you have to do is pick a lender and sign your life away.

hope that was helpful

laterz

 

[cool_vkb]

whats the general opinion abt sallie mae?

 

[Buspar]

I chose Citibank also and I consolidated my undergrad. loans that were from Sallie Mae. Sallie Mae is a private lender and a collection agency so if one should default with them it would be hard to negotiate since its in there best interest. They get paid from the government whether you pay them or not and on top of that their collection agency will collect fees from you that are nonnegotiable. Whether you pay your loan back on time or default Sallie Mae gets paid!

 

[cool_vkb]

I chose Citibank also and I consolidated my undergrad. loans that were from Sallie Mae. Sallie Mae is a private lender and a collection agency so if one should default with them it would be hard to negotiate since its in there best interest. They get paid from the government whether you pay them or not and on top of that their collection agency will collect fees from you that are nonnegotiable. Whether you pay your loan back on time or default Sallie Mae gets paid!

so is sallie mae good for students or bad? i have loans from sallie mae

 

[SubRosa]

I was wondering who you pod students have choosen as a lender? I have a 'recommended list' but it has 14 different lenders and am having a hard time deciding the best one.

Also, how did you incorporate in your scholarship if you got one? Did you simply just subtract the amount from the estimated yearly expense or are you still taking out the yearly max?

I went with Bank of America because I'm already doing basic banking with them. They give you like a quarter of a percent (maybe less, don't exactly remember) reduction in interest if you're already a customer. Wells Fargo had something similar too though.

I took out the yearly max when requesting the amount but my scholarship was deducted from the loan automatically by the school. I would assume most of the schools would do something similar.

Hope it helps.

 

[MaseratiGT]

I went with Bank of America because I'm already doing basic banking with them. They give you like a quarter of a percent (maybe less, don't exactly remember) reduction in interest if you're already a customer. Wells Fargo had something similar too though.

I took out the yearly max when requesting the amount but my scholarship was deducted from the loan automatically by the school. I would assume most of the schools would do something similar.

Hope it helps.

I choose BoA for the same reason.

If your personal bank offers student loans, you may be able to get a reduction on your interest rates, or other incentives.