Below are some questions for you to ask that will help you determine which lender might be a financial fit for you and your family. Knowing upfront some important questions to ask will enable you to feel more confident about your choice.
Things to ask!
- Do I want a fixed or variable rate?
- Do I want to be in repayment now or when my student graduates?
- Can I consolidate these loans together when I am finished borrowing?
- If I am able to consolidate will I lose an incentives or rebates I had on the original loan?
- If I use a co-signer and make a certain number of on time payments, will my cosigner be released of the loan obligation?
- If I let the lender take my monthly payment directly out of my checking/saving account, will I get any break in interest rate?
- Can I use this loan for any past due balance that I may have?
- Is my interest rate different if I use a co-signer?
- What kind of repayment options will be offered to me?
- Can I use this loan if I am having Satisfactory Academic Progress issues?
- Will my loan be sold to another company?
- How often and when is your customer service center available?
- What kind of fees (i.e. origination fees) do you charge upfront to service the loan?
- What kind of rebates do you offer upfront, if any? If so, how do I make sure that I do not lose them.
Loan Calculator
If you have already selected a product or just want to see how much a particular loan amount will cost you monthly, you can use a “calculator” to run some of these figures. Click on the link below and scroll down the Loans Section and then select Loan Calculator to get started.
http://www.finaid.org/calculators/
Currently there is no tool that will compare a Parent PLUS Loan and alternative student loan products since they are designed with different financing purposes in mind. Using the calculator offered here will at least help you compare the monthly payment amounts you might expect to incur if you are trying to evaluate a Parent PLUS versus alternative student loan product.