Evaluating Lenders - Advantage of All Lenders Benefits

"Evaluating Lenders - Advantage of All Lenders Benefits" submitted by SchoolGrantsfor Editorial Team and last updated on Friday 3rd June 2011

Here are some items to consider when evaluating a list of lenders from which to choose:

Advantage of All Lenders Benefits

Most lenders offer perks to borrowers, but many recent alumni are unaware that they exist. Companies like Sallie Mae (SLM), Nelnet (National Education Loan Network), Citibank N.A. (Student Banking), Xpress Loan Servicing, MOHELA, Great Lakes, American Education Services, Affiliated Computer Services, Inc. (ACS) Education etc. some of them offer quarter-percent interest-rate reduction for eligible borrowers who pay through auto debit. Besides saving on interest, auto debit is a way to make sure payments are made on time.

Other lenders give discounts if on-time payments are made for a consecutive number of months, usually 36 or 48. However, if you miss even one of your payments, the privilege can be revoked. Students should also be wary of fees to consolidate loans. With a new law in place, students with federal loans can shop around for a consolidation lender instead of having to stick with the one they took a loan out with. This allows for more flexibility but also the need to examine options carefully. Only some companies that offer private loans allow consolidation.