<p>I know that PLUS loan interest rates are fixed by the federal government. </p>
<p>Has anyone found any difference in the banks and other financial institutions that offer these loans? While I don't need another toaster...are there any incentives offered by any banks...that would encourage me to choose one over the other?</p>
<p>I have already been pre-qualified by one bank for the loan...just wondering if there's a reason to look anywhere else.</p>
<p>Seems like this question should have been answered on CC already..but I couldn't find anything specific after a quick search. (Looked in Parent's Forum and Financial Aid.) If anyone can refer me to the thread, that would be great.</p>
<p>Some banks offer reductions in interest rate if you pay via automated withdrawal from your checking account, or other benefits that could save you money.</p>
<p>We'd like to have our re-payment postponed until after our daughter graduates. One bank told us "no problem" while another -- whose loans are administered through Sallie Mae -- said there had to be economic hardship to get a deferment. That's a major difference; I wonder if other parents have experienced similar variations in banks' plus loan procedures.</p>
<p>various lenders have different features: discounts on rate for on time payment; reduction in funding fee etc. </p>
<p>It does pay to shop around, although I found the differences hard to compare - even with a finance background, and the $ savings not huge, but they still matter.</p>
<p>Basically, I found you could save some upfront or save during payout.</p>
<p>So far we've applied thru Student Loan Xpress. Our school recommended 3 (and had a little chart summarizing their offerings and the total payout-principle and interest-for all 3). SLE gave us a 2% discount on the interest rate if we agree to sign up for auto payment sweeping from our bank account. It was the lowest total cost. We didn't have to use any of the 3 but it seemed the best deal for us. I don't know if SLE gives that break to all applicants or not.</p>
<p>momoffive raises a good point - universities may have deals with some lenders for direct payment to the university. The convenience could be useful, but personally, I'd rather save a few bucks..</p>
<p>Thanks for posting this initial question. I, too, have been pre-approved and wondered if it paid to shop around, since the interest rate is fixed by the feds (and wouldn't you know it's gone up now, just when we need it?).</p>
<p>I just visited studentloanexpress.com and emailed them a couple of questions. We'll see how quickly they respond. I noticed they say you can pay the only the interest while the child's in school or possibly defer payments until after graduation.</p>
<p>I also talked with Nellie Mae over the phone and found them very helpful.</p>
<p>We did the SLE as well. They sold the loan to MOHELA through whom we applied for next year. It worked out well, and saves the 2%. However, each year the loan rate changes on July 1. One can consolidate the loan at a fixed rate prior to that time. This year it appears the consolidated rate is less than the projected July 1 rate minus the 2 points. One has to pay attention these loans even after they are made.</p>
<p>I agree that 2% discount on interest rate sounds very good...will look into some of the suggestions here. Still waiting for info. from DS's school to see if any of the financial institutions they're "affiliated" with offer discounts or other incentives.</p>