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Author Topic: Does the lender really matter?  (Read 6681 times)

Javert

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Does the lender really matter?
« on: April 21, 2005, 05:02:25 PM »
I was going through my UTexas financial aid maze, and it suddenly gave me a list of lenders to choose from (Wells Fargo, Compass, Access Group, etc., etc., etc.), or the option to select one of my own.

I clicked a few, and they all look about the same, really. My suspicion is that it doesn't make much difference, and all the 'special offers' are about the same. However, I thought I'd check with the people on this board first...
Attending: U Texas

"The truth is usually just an excuse for a lack of imagination." -- Garak, "Improbable Cause", Deep Space Nine

michaelduke

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Re: Does the lender really matter?
« Reply #1 on: April 21, 2005, 05:05:10 PM »
I was going through my UTexas financial aid maze, and it suddenly gave me a list of lenders to choose from (Wells Fargo, Compass, Access Group, etc., etc., etc.), or the option to select one of my own.

I clicked a few, and they all look about the same, really. My suspicion is that it doesn't make much difference, and all the 'special offers' are about the same. However, I thought I'd check with the people on this board first...

It could make a difference.  Some charge fees and some do not.  They could offer you different rates depending on how they look at your credit history.  And some law schools have special agreements with lenders (like Columbia and Access Group) to benefit their students.  It pays to shop around. 

risingMC

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Re: Does the lender really matter?
« Reply #2 on: April 21, 2005, 05:22:35 PM »
I'm interested in this, too. Access group seems simple and they're giving me $550 mroe in my pocket with no origination fees, but I need to figure out how to translate this interest-gobbly-gook-speak into something I can understand.

It seemed like a good idea to skip econ at the time ...

sunset1021

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Re: Does the lender really matter?
« Reply #3 on: April 21, 2005, 05:31:19 PM »
For USD, I know they have a "recommended lender list" which is Access Group, Chela, and Total Higher Education...they all have 0% origination fees and incentives like small interest rate reductions once you go into repayment.  At first I was going to take my stafford loan out through Wells Fargo, which is who I used to take a stafford loan out when I studied abroad in undergrad, but the finaid counselor strongly suggested I use a recommended lender, or at least one that doesn't charge origination fees bc that would save a lot of money in the long run, considering my end balance will be tens of thousands...
"Hold fast to dreams
For if dreams die,
Life is a broken-winged bird
That cannot fly."  -Langston Hughes

sunset1021

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Re: Does the lender really matter?
« Reply #4 on: April 21, 2005, 05:34:00 PM »
I haven't had time to research and compare between these 3 lenders, but their websites are:

Access Group: www.accessgroup.org
Chela: www.loans4students.org
THE: www.northstar.org
"Hold fast to dreams
For if dreams die,
Life is a broken-winged bird
That cannot fly."  -Langston Hughes

risingMC

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Re: Does the lender really matter?
« Reply #5 on: April 21, 2005, 05:41:36 PM »
There's also citiassit, which also has no origination fees. Their interest rate (school specific, though) is prime rate + 0%.

wildcataz2004

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Re: Does the lender really matter?
« Reply #6 on: April 22, 2005, 03:15:31 AM »
I think I'm going to use this lender-I don't think they charge any fees.

Southwest Student Services Corp
  P O Box 41090, Mesa, AZ 85274
  Pre-approval (866) 699-3199, lender code 830630
  www.sssc.com                               (877) 997-8400
  Outstanding Value
   *1 % interest rate discount at repayment.
  * % interest rate discount for auto debit
  (Interest rate discount is lost at 60 days late)

ElizaB

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Re: Does the lender really matter?
« Reply #7 on: April 22, 2005, 09:23:42 AM »
Make sure your lender doesn't have a 3% origination fee.

I found out too late that my undergrad and grad school lender (Educaid) charges this fee.  I am actually really pissed about it because my office at undergrad and grad school told me it didn't matter who I picked...so I just went with the one on top!  Then I come to find out from the UT Law FA office that my lender is one the ones that does charge this fee.  Thanks FA office at ---- and ----!  You cost $1440 in extra fees!!! But at least I know better now and I will not be using Educaid for my Law School Loans!

I have had good luck (as a bank) with Wells Fargo.  I haven't looked into their student loan deals, but if feasible, I am going to use them.
Attending: Texas

Javert

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Re: Does the lender really matter?
« Reply #8 on: April 22, 2005, 09:38:34 AM »
Wildcat-- I used those guys for undergrad, and I think they *did* charge a fee. I'm not 100% sure though. I'll check my records more carefully.

Eliza, fellow longhorn: Check this out-- http://www.ufcu.org/browse.php?content_name=eduloan_ut_stpar
Attending: U Texas

"The truth is usually just an excuse for a lack of imagination." -- Garak, "Improbable Cause", Deep Space Nine

ElizaB

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Re: Does the lender really matter?
« Reply #9 on: April 22, 2005, 09:52:37 AM »
Thanks, Javert!

I'm definately going to look into them.  They sound like they offer UT students pretty good deals!
Attending: Texas