<p>As a financial aid administrator, I am responsible for ensuring that our Recommended Lender list meets student/parent criteria. My problem, which I am hopeful you can help with, is that I really do not know what criteria is truly most important. My biggest concern surrounds the Stafford Loans...not Parent PLUS or Alternative Loans, as I need a "jumping off" point. </p>
<p>As you are exploring Stafford Loan lenders, what features do you feel are most important? What features should schools be focusing on finding within the 3000+ Stafford Loan lenders?</p>
<p>My daughter's school is a direct lender school but deducted origination fees from her Stafford last year - is not that much money but I found it annoying that she was awarded a need based loan because she needs the money yet did not actually receive 2.5 % of it. My son borrowed from a bank on his schools list that did not have origination fees so he got the full amount. Much preferable in my opinion.</p>
<p>I agree about no lender fees. NikkiiL, I just started working in f/a at a school that uses direct loans. While it was the best way for this school to go, the fees bug me. I personally prefer my D's FFEL. I like: no origination fees, opportunities on the other end to decrease fees (for things like on time payments, payments taken directly from checking account), final balance forgiveness with on-time loan repayment. In other words, I like the idea of rewards for repayment on schedule. This same lender also has PLUS loans that credit the amount of the origination fee right back to the loan - while I don't have a PLUS, I think that's great - the govt. makes the lender charge the origination fee, but they return it.</p>
<p>No fees for stafford loans. no repayment perks, but I feel that is a fair tradeoff. What is the chance that 3-4-5 years from now kids will be able to refinance to lower rates. I think the 6 and 6.8% rates are ridiculously high given the state of the economy.</p>
<p>My preferred lender is the Department of Education...Direct Lenders. Like the candidates said the other night, more Government regulation. Hear, hear...</p>
<p>swim and kels, Thanks! no fees are big on my list as well, as both an FA Administrator and as a student.</p>
<p>Sue, I will definately add Discover to my research list..but I don't know about their refinancing chances...many lenders have already done away with consolidation, prior to this financial crisis. Consolidation rules were also made more strict, so that might be a no-go anyways. But they are definately worth exploring as an option. Thanks!</p>
<p>Dude, There is NO WAY I will ever recommend Direct Lending, unless FFELP falls flat on its butt. Direct has no repayment benefits worth discussing, has a difficult time enlarging their system without MAJOR delays, and is notorious for making mistakes...mistakes students end up paying for in the end (I know this first hand on my personal Direct loan which is stil listed under the WRONG social...and I am having to jump through MAJOR hoops to get their typo fixed.) Government has already regulated the death out of Student loans...so much so that many FA Administrators are having a hard time understand the new rules. But thanks for your opinion...it is valuable, even if I disagree :)</p>