Most lenders are basically the same, especially when you're talking about the Federal loan programs (subsidized and unsubsidized Stafford loans); the limits on borrowing, interest rates, etc. really level the playing field. The big difference is in the repayment bonuses and origination/guarantee fees they charge or offer. I think the concept of fee vs. no fee loans has already been covered pretty well, but just to be sure... Stafford lenders come in two basic categories up front, those that charge an origination/guarantee fee and those that don't. For those that do, they will charge you 2% (that's the trend I'm seeing for this year - last year it was 3%) up front to just lend you the money, which means that if you want to borrow $20000 for next year, you'll only see $19600, but you'll still be responsible for paying back the whole $20000. (Personal side note: I and most people I've talked to go for loans with no-fees, but read on before you decide.)
The next big thing is looking at the repayment bonuses out there. These will vary by lender and by which option you chose above. Medloans, for instance, has two options based on fees or no-fees. For the no-fees loan they offer 3.3% credit/cash back of the original borrowed amount once you've made 33 on-time payments as well as a .25% interest rate reduction if you sign up for ACH payments from your bank account. On the other hand, the fees option will give you 3.5% of the original loan amount back at graduation as well as 4.5% back after 33 on-time payments. One of the other popular options out there is the THE loan program through
Northstar. They offer a kind of confusing credit system, which I'll let you read about if you're interested. I almost went with THE before settling on the no-fees Medloan through AAMC last year. Northstar has a
nice loan calculator, which lets you see how their repayment bonuses stack up against some of the other standard options out there. From my perspective this part really comes down to how much you're borrowing and how quickly you expect to pay it back. If you're expecting to pay things back quickly, the 3.3% and 4.5% cash/credit options will yield better relative savings, but if you're looking at really stretching out those payments, the THE bonus really gains ground.
Also be sure to look at when and how often the loan gets capitalized.
That's all I've got for now.
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It's a difficult learning curve when it comes to researching loans, particularly if you've never had to deal with them before.
