Selecting a Lender and
Master Promissory Note Information
This list is provided by UCC as a service to prospective student and parent borrowers who are seeking advice on what lender to choose when borrowing an education loan. Unlike many other types of consumer debt, Federal Stafford and PLUS loans are highly regulated by the US Department of Education, and interest rates and terms do not vary significantly.
In order to provide you with a wide variety of choices, we have listed below lenders that our students used in the last academic year. All borrowers have the right to borrow from the lender of their choice, whether or not the lender is included on this list. Choice of lender is in all cases the borrower’s responsibility. UCC provides the same treatment and service to all student borrowers, regardless of the lender list they select.
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Interest Rates for loans disbursed on or after July 1 ,2009
Subsidized: 5.6% Unsubsidized: 6.8% |
Since UCC does not recommend lenders, we do recommend that you look at the following criteria when choosing a lender:
- Does this lender deduct fees from the loan disbursement? Fees that are deducted up-front will cost you money because you will not receive all of the money you have borrowed.
- Does the lender provide the opportunity for rebates or interest rate deductions once repayment has begun? All savings are desirable, but benefits only extended during repayment - when you are finished with school and have better earning potential – may not be as beneficial as up-front savings such as no fees.
- Does the lender provide a toll-free customer service number with extended hours of operation?
- Does the lender disburse funds to the College electronically, eliminating the need for the student to sign a check? Some local banks and credit unions will only disburse funds via a paper check requiring you to endorse the check before it can be applied to your account.
- Does the lender often sell loans to another servicer or plan to in the future? Loans can be sold without the borrower’s permission, and this can leave the borrower with a lender that does not provide the same quality service as your original lender. We strongly recommend borrowing from lenders that provide service over the entire life of your loan and will not sell your loan.
- What percentage of their borrowers actually earn “back-end” benefits? Those incentives offered to borrowers who make 48 consecutive on-time payments sound attractive, but it may be very difficult to meet those requirements; if you are just a few days late with only one payment, the benefit usually becomes unavailable?
- How long has this lender been making student loans? In recent years, many “fly by night” lenders have come and gone from the student loan business, leaving their customers without promised benefits as their loans are sold. It’s best to stick with a lender that you’re familiar and comfortable with.
Please know that you are not obligated to select a student loan lender from this list. When selecting a lender, please keep in mind that several lenders will no longer process loans for Union County College students including Bank of America, Chase, Citibank, Student Loan Xpress, and TERI. Even if you had a loan with one of these lenders in the past, you must select a new lender to receive future funding.
Please be advised that: neither members of the Financial Aid Office staff nor UCC receive any inducements, payments, favors or gifts of any kind in exchange or as incentive or reward for listing a lender on this list; no UCC staff serve on any advisory boards, as consultants, or in any similar dual capacity with any of these lenders; neither UCC nor the staff of the Financial Aid Office has any financial interest in the lenders on this list.