<p>Today I filled out an application to get my stafford loans through my credit union. My credit union is not one of my school's preferred lenders. When I called the school to inform them that I planned on using the credit union the lady I spoke with said it would probably take longer because the process is slower this way. Is this true? </p>
<p>Are there any other pitfalls I should consider? </p>
<p>I decided to use my credit union because my school keeps switching lenders and making me go through all of the MPN stuff every year, which is getting annoying. Plus I really don't like that my loans are all over the place. This is the third time I've had to change lenders.</p>
<p>Also, is it possible that my credit union will reject my application? What circumstances could cause that to happen?</p>
<p>Does anyone have experience borrowing from a school not on the preferred lender list?</p>
<p>Yes. It shouldn’t be a major problem - just not seamless. I got the same song and dance from my daughter’s school.<br>
It takes longer for the loan to go through and for them to get their money. at least that was the experience with one of my kids.</p>
<p>another thing is that my school assumes the lender will have fees so instead of seeing 2750 due for the stafford loan for fall 2009, the amount ‘due in’ on his bursar account is something like 2712.50 I’ll have to call the FA office because this is incorrect. The lender I use does not withhold any fees.</p>
<p>The first year I used an alternate lender, I had to give the school the lender code and the guarantor code. The loan check was mailed to the bursar’s office in my son’s name. He had to go there to sign the check. This lender doesn’t do electronic transfer with my son’s school (NYU)</p>
<p>A few extra steps, but worth it to save $100 imo, ymmv</p>