Choose the Best Student Loan Lender for You

A university's financial aid office can and will recommend a private lender for students to work with — however, it is just that, a recommendation. The Higher Education Act mandates that schools can not require students to get loans through the preferred lenders suggested by their college's financial aid office. According to NextStudent, a leading Phoenix, Arizona based education funding company, students and parents should keep in mind that it is their decision when it comes to choosing “the who” behind who funds their Federal Family Education Loan Program (FFELP) loans.

Federal Family Education Loan Program

Interest rates on FFELP loans are mandated by the Department of Education, so all lenders that participate in this program must charge the same federal interest rate. Therefore, lenders must compete for business in other ways and most do so by offering special benefits, such as discounts for electronic payments and rate reductions for on-time payment history. When deciding on a lender it's important to take a look at these benefits carefully, and choose the lender that can save you the most over the long haul.

Also, lenders compete for business by offering different types of repayment schedules. Borrowers should look for a student loan lender that offers flexible repayment options, such as reduced payment or postponed repayment. Hardship policies are also an important factor because certain lenders will, under certain hardship circumstances, lower borrower's monthly payments or postpone repayment until the hardship has passed.

Lastly, look for a lender that offers the best customer service, support and convenience, such as online applications, a toll-free contact number, and a professional, courteous staff that will help you through the loan process and over the life of your loan.

NextStudent's FFELP Loan Benefits

NextStudent offers some of the most competitive benefits for FFELP loans. First and foremost, NextStudent is committed to excellent customer service. Every NextStudent customer is assigned their own Education Finance Advisor, one person to help the customer throughout the entire loan process. Also, there are no collateral or credit checks when applying for a NextStudent FFELP loan.

The NextStudent Premier Stafford loan package includes a 2 percent upfront cash rebate, a 3 percent cash rebate on the remaining principal balance after the first 30 months of consecutive on-time payments and .375 percent interest rate reduction when the borrower elects to use auto-debit for repayment.

The NextStudent PLUS and Graduate PLUS loan package includes a 3 percent cash rebate on the remaining principal balance after the first 12 months of consecutive on-time payments, a 2 percent interest rate reduction after the first 48 months of consecutive on-time payments and a .25 percent interest rate reduction when the borrower elects to use auto-debit for repayment.

Make sure to choose a lender that best works for you when finding a company to fund your FFELP loan.

The student loan advisers at NextStudent are helpful and knowledgeable about student loans. They are a trusted source in getting you the appropriate information about your student loan consolidation, student loan options and helping students get the college financing they need. Go to nextstudent.com. for more information.

By Student Loan Girl

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