| Student Loan Lenders | | | | Lenders frequently sell theirloans to other parties. |
| There are companies to help student borrowers find | | | | If this happens you will be notified who the new |
| student loans that meet theirbudget and bring them | | | | owners are without any rate changes |
| peace of mind in order for students to concentrate on | | | | Lenders own loans and receive borrowed payments. |
| theireducation; Visit Here how they will pay off their | | | | Lenders frequently sell theirloans to other parties. If this |
| student loans. | | | | happens you will be notified who the new owners |
| Now we can see the cost of college is surging and | | | | arewithout any rate changes. |
| financial aid is reducing, privateloans make the potential | | | | Secondary Market |
| of attending college possible for many students | | | | Secondary markets are organizations that purchase |
| thatcould not otherwise afford college. But consumer | | | | loans from other lenders. Bypurchasing loans, they |
| activist and student groups areconcerned that the | | | | restock the lenders funds that enable the lender to |
| growth of these loans can eventually demonstrate | | | | provideadditional loans to students and parents. |
| catastrophicfor borrowers who don't understand the | | | | Servicer |
| risks. | | | | A servicer is a company that lenders and secondary |
| With the changes coming in the future for student loan | | | | markets use to manage loans. |
| borrowers, it is important thatborrowers educate | | | | They carry out duties on behalf of the secondary |
| themselves in the area of student loans. Do research | | | | markets or lender. These dutiesmay include answering |
| on the | | | | customer service phone calls, collecting |
| Lending Company and see if you will feel comfortable | | | | delinquentaccounts, processing loan application, and |
| borrowing from the companyand most important you | | | | processing loan payments. |
| have to feel comfortable with the monthly payments | | | | Borrower |
| NOW. | | | | This is the person who receives the student loan, and |
| Before signing any papers ask what the WHOLE | | | | is responsible for repaying theloan. |
| PAYMENT is and then ask howlong you have to pay | | | | The school plays an important role in the student loan |
| off the loan. | | | | process. They makerecommendations on a lender |
| NOTE: | | | | choice. They determine a financial aid award that |
| DO NOT singe anything unless you completely | | | | affectsthe amount students will ultimately need to |
| understand what you are signing on. | | | | borrow. The school also provides answers tostudent |
| ·Feel free to take your time reading all the forms that | | | | loan process. |
| are giving to you. | | | | Guarantor-backer or sponsor |
| ·Ask many questions. | | | | A guarantor is a state or private nonprofit agency |
| ·Have a trustful advisor with you. | | | | approved by the ED to guarantee FFELP |
| ·Do not feel pressured to sign anything | | | | (Federal Family Education Loan Program) student |
| ·Do lots of research | | | | loans. In the FFELP the guarantor isthe chief reason |
| ·Give your self lots of time to find a student loan that | | | | why students with no credit history can receive a loan. |
| you are comfortable with. | | | | If lenders follow all federal guidelines for managing |
| What is the Loan Process? | | | | loans, if they provide any loans underthe FFELP they |
| This article will help in the understanding of how the | | | | are guaranteed repayment of most loans. The loan is |
| student loan process works. | | | | turned over to theguarantor if the borrower defaults |
| Who are involved, the implications of signing a | | | | on the federal student loan. The guarantor |
| promissory note; which is your contract to borrow or | | | | reimbursesthe lender and continues to assertively |
| repay and how you will receive your money. | | | | pursue the borrower for their repayment. |
| "Who are the lenders? What are the services | | | | Guarantors are not required to guarantee FDLP |
| provided? What role does the federalgovernment play | | | | (Federal Direct Loan Program), becausethe U.S. |
| in the student loan process? | | | | Department of Education is the lender for the William |
| Lenders Who Finance Education | | | | D. Ford Federal Direct Loan |
| Most schools often provide a list of companies and | | | | Program. |
| institutions that lends money tofinance a students | | | | Credit Bureau |
| education. | | | | The Credit Bureau gathers and stores credit |
| This resource will assist you in finding lenders to work | | | | information on individuals who borrowmoney. Getting a |
| with according to yourindividual needs. | | | | credit report is essential when applying for all PLUS |
| Who might lenders of college student loans be? | | | | loans and mostprivate loans, just as it is when applying |
| · A school | | | | for other types of loans such as a car loan,mortgage |
| · An insurance company | | | | loan, a credit card. The credit Bureau is called in when |
| · A pension fund | | | | a credit report isneeded for a loan application. |
| · A credit union | | | | After you borrow, the lender reports to the credit |
| · A bank | | | | bureau. Your credit report will show howmuch you |
| · A savings and loan association | | | | borrowed and whether you are making payments on |
| · A consumer finance company | | | | time. This information isthen available to potential |
| · The federal government | | | | employers and creditors. |
| Lenders own loans and receive borrowed payments. | | | | |