Saturday, August 05, 2006

Beware Of College Aid Loan Preferred Lists

I'm now walking pretty darn well, but I still don't have the reading thing down. That's okay because my uncle takes the time to do some reading for me. Here is an interesting article by John Wasik from Bloomberg News regarding the preferred lender lists that colleges give to those new students searching for loans that he read me about:

When students or parents approach a college financial-aid office for a federal loan, they may not be getting the best possible deal.

Borrowers are often given a ``preferred list'' of lenders certified by the college. You may believe that these are the best loans available since they are chosen by the aid office.

Getting a loan outside of the preferred list may even be discouraged by the college, which is heavily marketed by lenders.

The article goes on to say that rates may be better outside the preferred list and it's worthwhile checking other local lending institutions besides the college-aid loan list. Something for all of you looking at college loans to consider...

1 comment:

Bluegrass Mama said...

It was a little more work, but we did this for our son's college loans. He got a better deal from a lender in our state than from the preferred ones at his college in another state.