6 Tips for Choosing the Right Private Student Loan Lender

October 7, 2010 | posted by Jeff Sheely.

Choosing a student loan lender

When researching private student loan options, our best advice is to do your homework and compare, compare, compare. True comparison shopping is about looking at various lenders’ offers, including their real-time rates and terms, so that you can see everything that’s available to you.

Comparison Shopping

1) Use the Student Loan Marketplace to shop for your private student loan and receive accurate loan information from multiple lenders including traditional banks, credit unions, and non-profit lenders.
2) Compare loan terms. Most students and families compare rates, which are important, but you also need to look at the loan terms to determine other factors such as the length of the loan, forgiveness options and repayment terms.
3) Compare monthly payments and total cost. How much money will you be expected to pay once you graduate? What is the total cost of the loan? This is important information as you consider what you can afford to borrow and should not be overlooked.

Researching Lenders

Once you’ve identified loans that meet your expectations financially, you should also consider the following things:

4) Customer Service. Is the lender’s website user-friendly? If you need help, is it clear how to get it?
5) Credibility. Is the lender credible? What is the reputation of the lender? You can do a quick search in Google of the lender’s company name to research events and newsworthy information about them.
6) How student-friendly is the lender? Some lenders go out of their way to understand the needs of students and new graduates, and create very student-focused lending solutions. Others are specialists in other areas, and don’t cater to educational loans as much. You should find a lender that you believe has your best interests in mind.

Questions? Ask an Expert.

If you have questions about the best way to shop for a private student loan, just ask us! We’re here to help. The Overture Marketplace is the best solution for comparison shopping for student loans. Check out the Marketplace today.

Written by Jeff Sheely

Jeff Sheely is the Director of Marketing and Blog Editor for the Student Loan Marketplace. He can be reached at jsheely at overturecorp dot com or on Twitter at @overture_jeff.

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