Stafford and other Loan Providers -which is the best

[medtrial82]

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[baylormed]

If a medical school has no preferred lender, which one provides the best deal?


Medtrial

Do you mean banks?

I would stick with Stafford loans if possible (lower interest, and no interest in the subsidized portion until after graduation). As to the bank, I'm sure any of them will probably be the same deal, since it's the same loan (talking about Stafford loans).

 

[braluk]

Moving to financial aid forums

 

[Lesley]

If a medical school has no preferred lender, which one provides the best deal for Stafford Loans based on interest rate reduction (most provide zero fees)?




FEDERAL STAFFORD LOANS

LENDER & LOAN PROGRAM, ORIGINATION FEE (MAXIMUM 2%,) DEFAULT PREVENTION FEE (MAXIMUM 1%), INTEREST RATE REDUCTION, PRINCIPAL BALANCE REDUCTIONS AND CONDITIONS

AMS
A Sallie Mae Company 0% 0% 0.5% after 36 on-time payments Interest paid on the first year of the first unsubsidized loan,
1.5% original principal balance reduction at repayment, Another 1.50% principal balance reduction after 12 months of repayment

BANK OF AMERICA
0% 0% 0.25% for auto debit Up to 3.0% for on-time payments

CHELA 0% 0% 1.50% if sum of loan balance is $7,500 or more 0.25% for auto debit


CITIBANK 0% 0% 0.25% for auto debit 1.0% after 36 on-time payments and an additional 1.0% at 48 on-time payments
0 payments for last 6 months of repayment


NELLIE MAE 0% 0% 3.3% credit after 33 on-time payments

WELLS FARGO 0% 0% 2.0% after 36 consecutive on-time payments 0.25% for auto debit

I'm not sure if all these lenders are availalble in every area, but hopefully this will give you a start. I tried to paste the link, but it didn't work. The web site cautions to contact the lenders and verify lending terms and information. Good luck.

 

[Sol Rosenberg]

Thanks for that info, Lesley!

 

[medtrial82]

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[medtrial82]

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[edubbs5]

T.H.E. is another lender to be aware of and compare - for many reasons.

- no fees - first lender to provide this service! (and no way to tack on these fees later on)
- incentives aren't driven by "on-time payments" - you start receiving as soon as you go into repayment - and there is never a way to lose the savings. That is why over 95% of borrowers are receiving their benefits, where other lenders only can say 5-15%. They are banking that you will miss or be late on a payment!

Do you homework and be sure to ask the right questions! And be sure to READ THE FINE PRINT.