Because you may be entering into a long-term relationship with your Federal
Stafford lender, you should consider their commitment to the student loan
program and service quality as well as interest capitalization policies and
special fee discounts. In addition, maintaining all student loan borrowing
through a single lender usually simplifies future management of your loan
portfolio.
Some lenders may offer fee reductions on Federal Stafford loans. The
Louisiana Student Financial Assistance Commission, the state loan guarantee
agency, has announced it will continue to pay the 1% Default Fee on behalf
of borrowers, so this fee will not be deducted from loans guaranteed by the
state agency. Some lenders may also offer repayment incentive discounts. We
anticipate under 20% of borrowers will qualify for and/or retain benefits
conditioned on maintaining timely payments. Even discounts based on signing
up for auto-debit payment typically have a participation rate under 20%. See
the links below for more information and online applications.
Please file only one Federal Stafford Loan Master Promissory note with the
lender of your choice.
Whether you submit an electronic or paper note, you must
submit a copy to the LSUHSC-NO Student Financial Aid Office; also make a
copy for your own records.
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Choosing a lender and student loan guarantor is your right and your
responsibility. The LSUHSC-NO Student Financial Aid Office will process loan
applications for any participating lender of your choice, including but not
limited to those listed below. While we cannot pick a lender for you, we
will be glad to discuss your options and try to answer any specific
questions.
Notice: Recent changes in federal law and credit market conditions
have cut financial margins for lenders. Therefore, many lenders are reducing
borrower benefits, and some that have been offering zero fee Federal
Stafford loans may discontinue coverage of loan fees, passing the cost along
to the borrowers. We will attempt to ensure that lenders keep the
information at the links below accurate and up to date. However, please
check with your chosen lender regarding their borrower benefits and fees
before finalizing your lender selection.
Lender Links
PNC
Campus Federal Credit Union (All Schools Except Dentistry)
Campus Federal Credit Union (School of Dentistry)
Sallie Mae
Louisiana Educational Loan Authority (LELA)
Listing
Criteria
Loan Fee Reductions ► We maintain a strong preference for lenders that
enable our students to receive fee reductions on their Federal Stafford
loans. While most or all lenders will discontinue paying the Federal
Stafford Loan Borrower Origination Fee on behalf of borrowers for 2009-10,
this fee is scheduled to go down to only 0.5% for ’09-’10, and be eliminated
for subsequent academic years. We do prefer to list lenders that offer
loans guaranteed by agencies that cover the 1% Default Fee, such as the
Louisiana state agency.
Customer Service & Efficiency ► Lenders should provide well trained and
accessible customer service representatives, prompt problem resolution;
useful automated services and online account access, timely delivery of
funds, and compatibility with LSUHSC technical specifications to facilitate
school as well as lender efficiency. We require excellent customer service
and efficiency form our linked lenders.
Longevity & Reputation (Consistency & Trustworthiness) ► Generally,
lenders earn a place among our links only after their loan program under its
current structure has been operational for several academic years. Lenders
with a long-standing commitment to the federal loan programs receive added
consideration. Reputation is assessed based on our own and our students’
experiences, as well as external sources of information. Non-profit lenders
with student service orientations receive some additional favorable
consideration.
Other Financial Benefits ► Historically, lenders have offered a variety
of payment incentive benefits designed to provide additional savings to
students during the repayment of their loans. We give these benefits lesser
considerations because, with a few exceptions, the conditions for earning
and/or maintaining these benefits lead to a borrower participation rate of
under 20%. Also, these benefits are typically subject to change or
discontinuation at any time, at the discretion of the lender.
Private Loans ► The links above are compiled based on federal loans. The
vast majority of LSUHSC students are able to borrow sufficient funding
through federal programs, and we do not generally recommend private
alternative loans, because they are much more costly. However, we may decide
not to list lenders that offer clearly inferior private loan products, as
well as lenders that engage in what we believe to be deceptive or overly
aggressive private loan marketing techniques.
Diverse Options ► New federal rules require that, if we provide a list,
it include at least three unaffiliated lenders. We endeavor to exceed this
requirement. As a group, the lenders we list represent a diversity of
choices related to loan servicing arrangements and loan ownership.
