<p>I am trying to help my daughter pick a Stafford Lender, the college uses Feel, not Direct loans. The suggested providers by the school are:</p>
<p>Chase</p>
<p>Citibank</p>
<p>Citizens Bank</p>
<p>Sallie Mae</p>
<p>Wachovia</p>
<p>Of these, I've searched the threads and haven't seen any of these recommended, except maybe Wachovia was being explored. I've also read a few posts recommending EdAmerica. It is possible to choose other than a recommended lender. </p>
<p>I've read that everyone seems to end up at Sallie Mae regardless, so should I just send her to them? </p>
<p>I don't know what to do.... Would anyone who has already done the research let me know who they recommend or chose for themselves, and why? Thank you.</p>
<p><a href="http://www.discovercardstudentloans.com%5B/url%5D">www.discovercardstudentloans.com</a> (affiliated with discover card, discover bank, etc)</p>
<p>NO FEES for stafford loan. I am in the process of getting my son's loan set up with them now. NO I don't work for them.</p>
<p>their code is 831312, the guarantor is Great lakes 755</p>
<p>yes, you can chose who ever you want. a couple of extra steps for the school and you, but if you are saving 2% of the loan value, then it's worth it in my opinion.</p>
<p>I am less concerned with bonuses in repayment terms than paying points to get the loan. I figure there is always the option of consolidation after graduation.</p>
<p>sue, that link didn't work, is it this link?</p>
<p>Discover</a> Student Loans - Apply online for college loans</p>
<p>Hey, I didn't know about Discover - my d just completed the app for citi. I wonder if it is possible to change it ??</p>
<p>I would like to avoid a lender that is or deals with Sallie Mae due to the horror stories that I've heard. Does anyone know which of these are not related to and do not sell to Sallie Mae?</p>
<p>call discover 1-877-728-3030</p>
<p>afaik, they don't deal with sallie mae.</p>
<p>According to my understanding of Discover's site, the 2% reduction only applies to private loans, not Stafford.</p>
<p>Discover doesn't charge ANY points, no origination or guarantee 1% fees. If you borrow 4500, you get 4500,</p>
<p>If you are interested in repayment benefits, that is a different story</p>
<p>Sue, they charge 3% for PLUS loans according to their site.</p>
<p>I don't care about the plus loan, just the stafford. I'm paying my EFC with savings.</p>
<p>the OP asked about stafford loans, not plus or private loans.</p>
<p>I lived like a pauper for the past 15 years so I would be able to pay my EFC from savings. 8.5% isn't my idea of a good way to borrow money. My retirement plan would lend me money for 4%</p>
<p>The lender may not charge fees, but the guarantor agency may...so borrowing 4500 may not always get you 4500. Some guarantor's are paying the default fee, others are not.</p>
<p>Also, with lenders coming in and out of the FFELP business, I would be leary going with a newer lender. Find one that has been providing student loans for quite some time. A lot of the newer lenders have lent money and then gone out of business, leaving students hanging....it is a scary world out there right now.</p>
<p>from the website. No guarantor fees. If they go out of business, can't you just get a different lender??? </p>
<p>here is some info about the guarantor for Discoverstudentloans (part of discover card, discover financial services)
Great</a> Lakes Achieves Lowest Claims Rate in Nation</p>
<p>here is what the website says about stafford loans</p>
<h1>6.0% fixed (subsidized loans)</h1>
<p>6.8% fixed (unsubsidized loans)</p>
<h1>0.25% repayment interest rate credit when payments are set up for automatic debit from a bank account</h1>
<h1>Zero origination fees</h1>
<h1>Zero guarantor fees</h1>
<h1>Zero prepayment fees</h1>
<h1>Zero payments until 6 months after graduation or enrollment in school less than half-time</h1>
<h1>10 to 25 year repayment period</h1>
<p>I pulled this from a college website
<<q. what="" happens="" when="" a="" lender="" goes="" out="" of="" business?="" a.="" in="" the="" unlikely="" event="" that="" would="" go="" completely="" business,="" loans="" be="" sold="" to="" another="" lender.="" federal="" regulations="" require="" both="" buying="" and="" selling="" loan-holders="" notify="" borrowers="" within="" 45="" days="" after="" occurrence="" sale.="" this="" notification="" holder="" must="" identify="" or="" new="" servicer,="" address="" where="" send="" payments,="" telephone="" numbers="" loan="" servicer.="" are="" still="" obligated="" make="" on-time="" student="" payments.="">></q.></p>
<p>Just because Federal Regulations require something, it doesn't mean that is what is going to happen. One of my co-workers didn't find out that her loans had been sold until 6 months later, and she has lived in the same home for 30 years (so no changes in her mailing address).</p>
<p>Also, the college website is looking at the bright side...in today's economy, it is more likely that a lender will go out of business than it used to be. In 3 months we lost 5 of our lenders (2 preferred and 3 highly used ones). We are currently waiting decisions from another 4 widely used lenders to see if they will be staying in Stafford Loans.</p>
<p>If the lender does leave, you can choose another lender, but that can become confusing. Many of my students had to do just that over the last 6 months and, even though several are working adults (over 30 yrs of age), they are extremely confused over who is owed what and where. If my adult students can get this confused I truly worry about those 18-23 with even less life experience. Unfortunately, not all 18-23 yr olds have parents that are as deeply involved, or committed, as many who are on here. In fact, I just spoke with one parent who called to chew me out because she saw a billing statement from a lender for Stafford Loans of 20k...she swore her daughter could not owe that much because she (mother) hadn't requested that much in Stafford Loans. I had to explain to this poor parent that the student had made the requests and we are required to process the students request without obtaining consent from the parent(s)....at least for the student portion of the loan.</p>