<p>Help!! I just realized that I have to pick the lender. Who is the best lender for me? This is the link from my school.</p>
<p>For this year, I plan to take $2000 in loans through the Stafford-Subsidized loan. Which one would be the best deal for me?</p>
<p>i've heard alot of people using sallie mae. use the one that will give you the best rates and cheapest possible. also look into customer service aswell.</p>
<p>As a student, I would suggest going with Citibank, as they offer students the chance to earn back their repayment benefits. Life has an ugly way of happening at the worst time...making at least 1 payment late. With most lenders, 1 late payment means you lose all your benefits</p>
<p>I was under the impression that for the subsidized loans it doesn't really make a difference (since uncle Sam's got your back while your at school).</p>
<p>Your choice in lenders does matter for Stafford Loans, as your repayment benefits are going to differ. While it is true that the loans are backed by the government and many terms are the same regardless of lender, incentives can greatly change how much you will have to pay back on the loan once you enter repayment.</p>
<p>As a rule of thumb, the two things you want to look for are:
* Reduction of or elimination of loan origination fees -- the amount charged at the beginning, which reduces th amount of your loan (generally about 3% of the amount borrowed, but some lenders waive this entirely).
* Reduction of interest rate: the bigger the reduction and the sooner that it kicks in, the better. (The problem with reductions or incentives that kick in later down the line, is that you may never get them if you consolidate your loans or decide to accelerate payments).</p>
<p>If I were in your shoes, with the options from your college, I would go with Sallie Mae IF you plan to sign up for the automatic payment plan immediately, because you get an immediate 1% interest reduction, and an additional 1% interest reduction in 12 months. If you sign up for automated payments you won't have to worry about them being on time -- they will be withdrawn automatically from your bank account -- you will just need to make sure there is enough money in your account each month to cover the payment.</p>
<p>I use Direct Loans, no lender just the govt.</p>
<p>I wouold avoid Sallie Mae if you want to take advantage of repayment benefits. I know of many students, including myself who have been stiffed by Sallie Mae. I lost my repayment benefits in my 2nd month of repayment because they delayed the processing of my payment. It was submitted to them 2 business days before my payment was due but they did not process the funds from my account until 2 business days after the due date. When I contacted them, I got some person who barely spoke english...who told me that my benefits were gone and I should have submitted my electronic payment at least a week before it was due.</p>
<p>Hi. I'd just like to remind everybody that borrowers are not limited to the lenders on such "Preferred lender" lists. Often, borrowers can find better deals at non-profits or more competitive for-profits.
Kim Clark
US News & World Report</p>
<p>You are correct, Kim...however one needs to be careful when selecting outside lenders because the process can become quite lengthy and the funds can take a long time to be received. You also have to be careful because not all lenders are created equal. With over 3000 potential lenders to choose from, students who venture out on their own to find a Stafford Loan lender can end up with no funding should the lender close up shop. Also, some of these little known non-profit and for-profit lenders can also do a number on the student when it is time for them to enter repayment. </p>
<p>Be very careful when you search for an unpreferred or unrecommended lender....it could be a mistake which will cost you thousands of dollars in the future.</p>