More Information About Loans
Colleges and universities offer federal education loans to help students and parents finance education expenses. Financial Aid Services strongly suggest that you compare lenders and benefits. In order to help you in this process, we have provided you with websites to research lenders and we have developed a set of criteria you can use when you interview a lender.
Non-Profit and State Based Student Loan Providers
Some states offer post secondary lending programs. Eligibility for these loans vary from state to state. Some states will require that you are a legal resident or attend school in that state. Others will offer their loan program to any parent who has a student in college. We recommend you research your state and others to determine the best program for your family. Check Education Finance Council for a list of non-profit and state based student loan providers.
Other Lenders
Connecticut College Financial Aid Services recognize that there may be lenders not currently on our list of lenders who might offer the same benefits. There are no penalties or consequences if you choose a bank not on our lender list. The Financial Aid Services staff will be happy to certify a loan from the lender of your choice. To explore and/or research other lenders, check with Elm Resources.
Questions to ask when talking to a perspective lender.
Experience longevity
1. Is the lender a well-known, reputable company?
2. What is the lender's track record in the industry?
3. Is the company's focus on student loans?
4. How many customers have loans with this lender?
5. Is the lender financially sound and strong?
Best value & benefits to borrowers
1. Does the lender offer to pay fees on the student's behalf?
2. Does the lender offer interest rate reductions and rebates?
3. How easy is it for borrowers to earn and keep rate reductions and rebates?
4. Does the lender offer borrowers the opportunity to re-earn rate reductions?
Customer service investment
1. Does the lender recommend that students maximize their use of free aid and federal loans before taking a private loan?
2. If so, will servicing remain with the originating lender?
3. How convenient are the lender's call center hours?
4. Are the lender's customer service representatives experienced, friendly and knowledgeable?
Flexible repayment options
1. Does the lender offer combined billing of their federal and private loans?
2. Does the lender offer deferment and forbearance counseling? Does the lender offer flexible repayment options?
3. Does the lender provide tools and resources to help borrowers determine the best repayment solutions for them?
4. Does the lender offer loan consolidation options?
5. Does the lender advise borrowers on debt management/default prevention?
Technology investments
1. Can students and parents apply for loans online at any time?
2. Can borrowers access and manage their account online 24/7?
3. Does the lender offer support for technology and online services?
Last Modified: Wednesday, November 07, 2007 10:02