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Important Questions to Ask Lenders
- What borrower benefits are offered? How do you qualify for these benefits?
- Can the benefits offered change? How? When?
- Does the lender sell their private loans to other lenders? If so, will your borrower benefits and rate discounts continue?
- Is the customer service good? Call the lender and ask questions. What are the customer service hours? Can information be accessed over the Internet? How long did you have to wait for your call to be answered?
- Is extra effort put forth to help students avoid default?
- What is the interest rate of the loan? Will the interest rate remain the same for the entire life of the loan?
- How long is the repayment period for the loan? Is there a penalty for paying back the loan beforethe end of that period?
- What are the penalties for missing monthly payments?
- What are the repayment incentives?
- What are the repayment terms?
- Does the lender provide loans for both matriculated and non-matriculated students? What about full-time vs. less than half-time enrollment?
- What are the minimum and maximum amounts you can borrow?
- Does the lender provide loans to cover past due or prior term balances?
- Is there a loan available for students who are NOT US citizens?