How to Select a Lender for Your Student Loan

Arm Yourself with These Basic Questions

There are hundreds of different student loan lenders and retail banks to choose between when you are considering a college loan. Each has their own benefits and disadvantages, and it can be confusing figuring out which lending institution best suits your needs. You can simplify your search by asking a few basic questions, and comparing the terms and rates that are being offered.
Many colleges and universities provide students with a list of preferred lenders. These are student loan providers that the university has worked well with in the past. While these lists can help point you in the direction of a lending institution, you must remember that the ultimate choice is yours. Your college financial aid adviser is legally unable to make recommendations based on business partnerships. So it is up to you to do the research, and decide what student loan is right for you.
To begin with, there are three basic sources of student loans and you may find your self utilizing one or all of them to finance your college education. They are:

• The Federal Government with their Federal Direct Loan Programs
• Student loan providers such as Sallie Mae and the National Education Loan Network or Nelnet.
• Retail banks, such as Bank of America and Chase, that originate private lender loans and sometimes administer Federal loans.
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• What Types of Loan Does the Lender Offer?

  Different lending organizations will have different loan packages available. When considering a lender find out what types of student loan programs they offer.
  
• Does the lender administer Federal student loans?
• Does the lender provide private undergraduate loans?
• Does the lender provide private graduate or post-graduate loans?
• Does the lender provide student consolidation loans? 
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• source http://www.gocollege.com/financial-aid/student-loans/selecting-lenders.html
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