UNION COUNTY COLLEGE
SAMPLE STUDENT LOAN LENDER LIST
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.
Inclusion on this list based on a combination of UCC student borrowers’ satisfaction with lenders’ customer service, and the Financial Aid Office staff’s assessment of competitive terms and rates offered by lenders, as well as its assessment of service provide to UCC borrowers. UCC believes that reliable service is the most important criteria in recommending a lender to potential borrowers. Also, UCC only recommends lenders who do not sell their loans to another lender at a later date; borrowers can and do lose certain benefits when lenders sell students’ loans to other lenders, and we therefore consider a lender’s policy on selling loans when recommending lenders. UCC continuously monitors the service our students receive, and will review this list of lenders at least annually. The Financial Aid Office welcomes and encourages feedback from student and parent borrowers regarding their experience with lenders.
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Information |
Special Benefits/Incentives |
How to Apply |
Nelnet
www.nelnet.com
(866) 866-7372
Lender Code: 833669
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- 1.0% origination fee
- 0% federal default fee
- No pre-payment penalty
- 0.25% interest reduction for auto debit payments
- Maintains borrower benefits for life of loan
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Apply at:
www.nelnet.com
use the link Apply for a Loan |
PNC Bank
www.pnconcampus.com
(800) 762-1001
Lender Code: 809921
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- 1% origination fee
- 0% federal default fee
- 0.25% interest rate deduction for auto debit
- Combined billing for multiple loans
- Single point of customer service for the life of loan
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Apply at:
www.pnconcampus.com |
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Wachovia
www.wachovia.com
(800) 338-2243
Lender Code: 830005
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1% origination fee
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0% federal default fee
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1.00% rebate of the original loan amount at repayment
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0.25% rate reduction with auto debit
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Maintains borrower benefits for life of loan |
Apply at:
www.wachovia.com
use the link Apply Now |
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Note: As of July 1,2008 the interest rate on Subsidized Stafford Loans will be a fixed 6.0%; Unsubsidized Stafford Loans interest rate remains at the current rate of 6.8%. |
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In Spring 2008, several lenders from whom many UCC students previously borrowed, including Citibank, Chase, Student Loan Xpress and TERI, all announced that they were either leaving the student loan business or were no longer lending to students at community colleges. The Financial Aid Office will continue to monitor this industry trend and amend this list and identify new available lenders as necessary and as quickly as possible. Students who borrowed from those lenders may still be able to borrow, but will have to select a new lender. In the future when you enter repayment, you may choose to consolidate your loans from multiple lenders with your most recent lender.
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 recommending any lender; no UCC staff serve on any advisory boards, as consultants, or in any similar dual capacity with any recommended lender; neither UCC nor the staff of the Financial Aid Office has any financial interest in the lenders we recommend to students for their loans.
As these lenders are all independent entities, the College cannot guarantee their services, and no guarantee is given nor implied that these particular lenders have the lowest available rates.
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. When selecting a borrower, we recommend that you ask the lender about their practices regarding the following issues. Do they:
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.
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.
Provide a toll-free customer service number with extended hours of operation?
Disburse funds to the College electronically, eliminating the need for the student to sign a check?
Sell loans to another servicer 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.