Financial Aid Office

• ASAP Union Bank & Trust/Nelnet
• AlaskAdvantage (Alaska Residents Only)
• Bank of America
• Sallie Mae
• U.S. Bank
• Wachovia
• Wells Fargo   

Choosing a lender for a student loan or parent PLUS loan is a major decision. 

The choice of what lender might be one that stays with you through many years of repayment.  The Financial Aid Office is not able recommend a lender as a perfect match for you.   We encourage you to research lenders and become an informed consumer.

We provide this list of lenders as a service to families so that you are aware of the lenders whom we have the most experience.  Based on feedback we've received from families and a history of reliable processing experiences within our office, we are comfortable with the record of service normally provided by these lenders.

We suggest you consider the following factors when comparing possible lenders:

• Ability to service all of your loans
• Interest rates and terms:  Although these are very similar for the federal loan  programs, some lenders do offer better terms or discounts.   
• Loan application process:  Can you apply online?  Is instant loan approval offered?
• Repayment plans which fit your financial situation
• Benefits for borrowers who pay on time or make loan payments electronically.
• Customer service:  Can you reach a live operator quickly to check on the status of your loan during hours convenient for you? Is their web page useful?

Borrower Benefits:   

Federal education loans have the same interest rates and fees, but some lenders may offer discounts that can reduce the cost of the loan.  These discounts are referred to as borrower benefits.  Some benefits are earned through a demonstrated history of on-time payments.  Borrower benefits can include interest rate reductions, full or partial origination fee rebates, or principal balance reductions, or rewards for rewards for utilizing automatic direct debit payment methods.

Qualifying for Borrower Benefits:

It is tempting to shop for a lender based on borrower benefits alone.  Our office considers other factors, such as customer service, to be important as well.  Please be aware that in some cases, if you are late with a single monthly payment you will not earn a borrower benefit for on time payments.   Also, some benefits, once earned, can be lost if payments do not continue to be made on time.  Some estimates of the percentage of students that earn borrower benefits for on-time payment are as low as 15%.   The best strategy for making payments on time is to sign up to make loan payments through automatic direct debit.

Questions and Answers

Why did the Financial Aid Office make this lender list?

We created a lender list to assist families with decision-making.  There are thousands of lenders to choose from.  This lender list highlights some that we have had a positive experience with.  There is no penalty for choosing a lender that is not part of this list.

 

What criteria are used to create the Selected Lender list?

This list was developed by the staff in the Financial Aid Office and is based on two criteria.  One was what we experience for reliable, quick processing of loans through these lenders.   We also gave consideration to informal feedback we received while working with families in regards to their customer service experience with lenders.

 

May I choose a lender that is not on the list?

Yes, you may choose to use any lender that participates in the FFELP Loan Program.  We are not a Direct Lending institution, so you may not choose to use Direct Loans. 

 

Where can I find out more about the lenders and compare terms and offers?

We have given you the lender’s web site and telephone numbers to contact them directly. We encourage you to inquire directly with the various lenders.  In doing so you will take the first steps to judge what the lender provides in the way of customer service and information.