How to Choose a Lender

The federal government sets interest rates on student loans; therefore, interest rates on Stafford and PLUS student loans are the same for all lenders. However, lenders offer a variety of ways to save you money on the cost of student loans. Follow these tips when choosing a lender:
 

• Be aware that some lenders accept and process payments on their own loans, while other lenders sell their loans to another lender for servicing. If you prefer to make your payments to only one lender, this is important information to know when your loan enters repayment. If possible, make sure to use the same lender each time you borrow a student loan.



• In most cases, it is not necessary to have a checking or savings account with the lender of your student loans.



• Usually, your college financial aid office will provide you with a lender preference list.



• Participating lenders and corresponding ID number: