How to Choose A Lender by jya95852

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									    California Institute of Integral Studies contacted numerous lenders that participate in the Federal Family
 Education Loan Program. The lenders included in this list are those that have committed to providing loans to
 our students. CIIS does not specifically endorse any lender that appears on this list. Borrowers may choose
any Federal Family Education Loan lender that will extend a loan for the student's attendance at this
                                                      college.


                                   How to Choose A Lender
Please keep the following in mind when choosing a Student Loan Lender.

   1.   Borrow wisely. A student loan is real money. Understand the type of loan you are taking out and its
        repayment terms.

   2.   Before taking a loan, determine how much you’ll be able to afford to repay. Estimate how much money
        you'll need, what your monthly payments and other expenses will be, and what you can expect to earn
        after graduation. Borrow only what you need and can pay back. Also, keep in mind that the longer you
        take to pay off your loan, the more interest you'll pay over the life of your loan.

   3.   Federal Stafford Loans are disbursed in equal disbursements, generally one for each semester. If you
        borrow a loan for the academic year, you will receive half of the loan in the first semester and the other
        half of the loan in the second semester.

   4.   Each disbursement may be reduced by up to 2% in origination and default fees.

   5.   Typically, a loan will cost you nearly half as much in interest when fully repaid for the 10-year
        repayment period. For example, $10,000 in Federal Stafford Loans will ultimately cost you $14,559
        when fully repaid ($10,000 in principal and $4,559 in interest). You can pre-pay or double your
        payments to reduce interest costs.

   6.   Calculate your approximate monthly payment. Once you enter repayment, multiply the total of all of
        your loans by .0121328 if the interest rate is 8%; or by .0106066 if the interest rate is 5%. Analysts
        believe that your monthly student loan payments should not exceed 8% of your monthly income.

   7.   A “subsidized” Federal Stafford Loan means the federal government pays the interest on your loan while
        you are enrolled at least half time and for up to six months after you graduate. An "unsubsidized"
        Federal Stafford Loan means that you are responsible for interest accrual from the date of
        disbursement.

   8.   Management of your loan is your responsibility. Good management practices can establish your good
        credit. Keep copies of all documents and all correspondence. Make all payments on time. Consider
        paying through automatic debit from your checking or savings account for hassle-free repayment and
        additional benefits from lenders.

   9.   Communicate with your lender/servicer and inform them if your name or address changes, you change
        universities or withdraw from school, and when you graduate.

   10. If you have trouble making the monthly payments once you are in repayment, call the lender or
       servicer. Ask them whether you are eligible for a deferment; ask them about their forbearance policy,
       loan consolidation, and graduated repayment plans.




Financial Aid Office ~ 1453 Mission Street, San Francisco, CA 94103 ~ 415.575.6122 (Ph) ~ 415.575.1268 (Fx)
Stafford Loan

Before choosing a Stafford Loan lender, you should review all the lender options. Below you will find
important information regarding Stafford Loans and repayment.


                                           CIIS Lender Option List
Lender Name                        Lender #               Telephone                      Website
Sallie Mae                         802218                 1-888-854-SLMA                 www.salliemae.com

Discover Loan                      831312                 1-877-728-3030                 www.DiscoverStudentLoans.com

Wells Fargo                        807176                 1-877-699-5444                 www.WellsFargo.com/student

                                                          1-866-4NELNET
Nelnet                             833669
                                                          (1.866.463.5638)
                                                                                         www.nelnet.com

Wachovia                           81005                  1-800-338-2243                 www.wachovia.com/education


                Compare Stafford Lenders Fees and Borrower Benefits
Lender Name                 Fees             ACH?* Benefit?                        When
                                                                                   When payments are set up
                                                                                   for automatic debit from a bank
Sallie Mae                    1.5%           Yes    N/A
                                                                                   account (all loans serviced by
                                                                                   Sallie Mae)

                                                                                   When payments are set up
Discover Loans                1.5%           Yes    0.25% interest reduction       for automatic debit from a bank
                                                                                   account

                                                                                   When payments are set up
Wells Fargo                   1.5%           Yes    N/A                            for automatic debit from a bank
                                                                                   account

                                                                                   When payments are set up
Nelnet                        1.5%           Yes    0.25% interest reduction       for automatic debit from a bank
                                                                                   account

Wachovia                      1.5%           Yes    N/A                            N/A

Stafford Lenders Interest Rates
             Lender Name                                                     Rates
                                                                         Undergraduate:
                                                                      5.6%(sub), 6.8%(unsub)
              All Lenders
                                                                            Graduate:
                                                                        6.8% (sub & unsub)




Financial Aid Office ~ 1453 Mission Street, San Francisco, CA 94103 ~ 415.575.6122 (Ph) ~ 415.575.1268 (Fx)
Graduate PLUS Loan

Before choosing a Graduate Plus loan lender, you should review all the lender options. Below you will
find important information regarding Graduate Plus Loans and repayment. There is no grace period
on Graduate PLUS Loans.

The Grad PLUS loan is available only to graduates who can pass a credit check; If you fail to pass the
credit check, you may still receive the loan if someone with a good credit history co-signs for the
loan or if you can show extenuating circumstances.


                                         CIIS Lender Option List
Lender Name                         Lender #              Telephone                     Website
Discover Loan                       831312                1-877-728-3030                www.DiscoverStudentLoans.com

Wells Fargo                         807176                1-877-699-5444                www.WellsFargo.com/student

                                                          1-866-4NELNET
Nelnet                              833669
                                                          (1.866.463.5638)
                                                                                        www.nelnet.com


          Compare Graduate PLUS Lenders Fees and Borrower Benefits
Lender Name                  Fees            ACH?* Benefit?                         When
                                                                                    When payments are set up
Discover Loans                   4%          Yes    0.25% interest reduction        for automatic debit from a bank
                                                                                    account

                                                                                    When payments are set up
Wells Fargo                      4%          Yes    N/A                             for automatic debit from a bank
                                                                                    account

                                                                                    When payments are set up
Nelnet                           4%          Yes    0.25% interest reduction        for automatic debit from a bank
                                                                                    account

Graduate PLUS Interest Rates
            Lender Name                                                      Rate
              All Lenders                                                    8.50 %




Private Loans

Paying for your education is a serious long-term financial obligation; that’s why comparing the costs of different
ways of financing your education is so important. Private loans tend to have higher fees and interest rates than
federal government loans. Private loans also do not offer the opportunities for cancellation or loan forgiveness
that are available on many federal loan programs. So it makes good financial sense to exhaust your federal loan
options (as well as grants and scholarships) before considering loans from any private companies.

How to Spot Deceptive Private Student Loan Practices

If you are considering a private student loan, it’s important to know whom you’re doing business with and the
terms of the loan. The FTC and ED offer these tips to help you recognize questionable claims and practices
related to private student loans.




Financial Aid Office ~ 1453 Mission Street, San Francisco, CA 94103 ~ 415.575.6122 (Ph) ~ 415.575.1268 (Fx)
    •   Some private lenders and their marketers use names, seals, logos, or other representations similar to
        those of government agencies to create the false or misleading impression that they are part of or
        affiliated with the federal government and its student loan programs. ED does not send advertisements
        or mailers, or otherwise solicit consumers to borrow money. If you receive a student loan solicitation, it
        is not from ED.
    •   Don’t let promotions or incentives like gift cards, credit cards, and sweepstakes prizes divert you from
        assessing whether the key terms of the loan are reasonable.
    •   Don’t give out personal information on the phone, through the mail, or over the Internet unless you
        know with whom you are dealing. Private student lenders typically ask for your student account number
        — often your Social Security number (SSN) or Personal Identification Number (PIN) — saying they need
        it to help determine your eligibility. However, because scam artists who purport to be private student
        lenders can misuse this information, it is critical to provide it or other personal information only if you
        have confidence in the private student lender with whom you are dealing.
    •   Check out the track record of particular private student lenders with your state Attorney General
        (www.naag.org), your local consumer protection agency (www.consumeraction.gov), and the Better
        Business Bureau (www.bbb.org).


                                             CIIS Lender Option List
Lender Name                         Lender #               Telephone                       Website
Chase Select                        503000                 1-866-306-0868                  www.chasestudentloans.com

Wells Fargo Education               807176                 1-877-699-5444                  www.WellsFargo.com/student
Connection
Discover Loan                       831312                 1-877-728-3030                  www.DiscoverStudentLoans.com


              Compare Private Loan Lenders Fees and Borrower Benefits
Lender Name                     Fees           ACH?* Benefit?                              When
                                                                                           When payments are set up
                                                                                           for automatic debit from a bank
Chase Select                        0%         Yes       0.75% interest reduction
                                                                                           account and there is an
                                                                                           approved co-signer

                                                                                           When payments are set up
Wells Fargo Education
                                    0%         Yes       0.75% interest reduction          for automatic debit from a bank
Connection                                                                                 account

                                                                                           When payments are set up
                                                                                           for automatic debit from a bank
Discover Loan                       0%         Yes       2.25% interest reduction          account and 2% cash reweard
                                                                                           on the outstanding principal
                                                                                           balance at graduation.

Private Loan Interest Rates
              Lender Name                                                           Rate
               All Lenders                                                      Credit Based


* ACH: The Automated Clearing House is an electronic payment Network that exchanges funds via Electronic Funds Transfer
(EFT) throughout the U.S. fifty states and territories. Over 98% of the nation's banks including the Federal Reserve belong to
the ACH. CH payments provide better cash management capabilities and lower costs than traditional paper payments.




Financial Aid Office ~ 1453 Mission Street, San Francisco, CA 94103 ~ 415.575.6122 (Ph) ~ 415.575.1268 (Fx)

								
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