Students: What to Ask a Lender
- What is your lowest interest rate and fee combination, and how can I get it? Is it for a specific time period or does it go for the life of the loan?
- Is there a limit on how high the variable rate can go? How often is the interest rate adjusted and how is it determined?
- What interest rate can I get on a fixed-rate loan?
- How long will I be repaying the loan and is there a penalty of paying it off early?
- When do I have to start making payments? How long can I defer payments while I’m in school? If I go to grad school and defer payments, how much will I owe when I do start making them?
- Will I lose my discount for paying on time if I have only one late payment or if I ask for a change in the payment schedule?
- What proportion of your borrowers get the discounts you offer? Are your discounts guaranteed or are they subject to change later?
- Would you allow me to defer or reduce my payments temporarily because of economic hardship? Under what circumstances and for how long?
- How much can I borrow without reducing my eligiblity for government or institutional aid?