<p>Looking at unsubsidized Stafford loan for freshman year. School provides a "partial list" of lenders...Chase, Citi, Key, Wells Fargo, Total Higher Education. Are all Stafford lender programs equal? Do terms vary (interest rate, grace periods, etc.)? Are there hidden fees to look for? If you borrow X amount and your repayment schedule is X years, will your monthlies and total repayment amount be the same no matter which lender you choose? Any reliable resources to do some homework on this?</p>
<p>Yes terms do vary so you do have to research the different lenders. However as another poster(sueinphilly) mentioned in other threads, look into Discover student loans. They have zero origination fees for ther stafford loans.</p>
<p>The basic conditions for Stafford loans are the same. The grace period is 6 months. The interest rate for unsub loans is 6.8%. The interest rate for sub loans disbursed in the 2009-2010 school year is 5.6%. I think the fees are a default fee of 0.5% and 1% origination fee (they rules keep changing - I think the origination fees are going down). The repayment period is 10 years.</p>
<p>However different lenders will offer different incentives to get you to choose them. Some lenders will not charge you the fees. For instance my son’s lender does not charge the origination fee and some state lender servicer organization pays the default fee for state residents. Other lenders may promise to reduce the interest rates after a certain number of on time payments.</p>
<p>The best thing to do is go through your options for lenders and compare their incentives. Personally my most important thing to look for is that the fees are waived as that means you get the full amount of the loans rather than the loan less the fees. That is something you know you have rather than the ifs, buts, and maybes of promised possible future interest reductions. After the fees then I would look at what the offers are as far as interest rate reductions etc.</p>