Choosing a Federal Student Loan Lender

Even though all federal student loans are similar, there are some differences between one student loan lender and another. Choosing the right lender could make a big difference in your experience when repaying your loans in the future. Here are a few things to consider about choosing a federal student loan lender.

Costs and Fees

One of the most important factors for you to consider when choosing a student loan lender is the cost. With federal student loans, the interest rates will all be the same. However, by choosing the right lender, you can potentially save money. For example, some of the student loan lenders out there will give you a discount if you agree to have your monthly student loan payment deducted from your checking account. Other lenders will give you a discount if you make on-time payments for a certain amount of time.

Types of Loans Available

Another factor that you should consider is the type of student loans that the lender offers. Having a lender that has several different loan programs to choose from could be in your best interest. Many lenders will offer Perkins loans, Stafford loans, as well as PLUS loans for graduate students and parents. If you have not chosen a specific type of loan yet, you need to work with a lender that has several different types available. This way, you will have the options that you need to choose the right type of loan for your situation.

When looking at the different loans are available, it may not always be in your best interest to simply choose the one that has the lowest interest rate. You might want to take a loan that has a higher interest rate so that you can have a more flexible repayment term. There are a lot of different loan programs out there and it is always better to have more options.

Customer Service

The customer service of the student loan lender should also be something that you take into consideration. You need to choose a company that prides itself on customer service and has a good reputation in the industry. When you contact the lender you want to be able to talk to a representative within a reasonable amount of time. You want the representative to be able to help you with any issues that you might have. 

Many people who start repaying their student loans need to adjust the repayment terms. They might need to use an income-based repayment program or a graduated payment program. Some people even need to take advantage of a forbearance on their student loans. The ideal situation is having a student loan lender that is willing to work with you to find the best repayment solution. You should not overburden yourself with student loan payments that you cannot afford, and working with the right lender can help you avoid this.

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