As I've mentioned in prior posts, your options for student loan lenders is dwindling due to federal loan subsidy cuts. In addition, accusations of financial aid offices taking kickbacks from lenders in order to be put on the school's preferred student lender list has created further roadblocks to getting a student loan. Schools can no longer arbitrarily add any lender on a preferred list. Schools must request a Request for Information (RFI) from lenders to select the most beneficial service to students. While I think this is a good idea, it took a great deal of time to gather RFIs and evaluate the lenders, which left some schools and students in limbo when applying for a federal loan.
About a year ago, I attended my state's financial aid conference and watched a demonstration from SimpleTuition. This company is not a lender, but rather a clearinghouse for lenders to subscribe and submit their loan information to SimpleTuition's database. Yesterday, I attended a Webinar sponsored by SimpleTuition, and I feel it's worthy of promoting this website.
Before I explain SimpleTuition, let me prefice by saying that the lenders your school chooses for their list are reputable and should have been carefully scrutinized to make sure they provide an excellent product and service commitment to students. That said, students are no longer mandated to use a school's preferred lender.
Like I said earlier, SimpleTuition is an independent company that gathers lender information, much like the RFI. However, this is a much larger database where any lender can subscribe and submit information. However, SimpleTuition only benefits students in the Federal Stafford Loan program and those looking for private alternative loans. Direct Lending is regulated by the government and no lenders are involved.
SimpleTuition allows students to run a comparison of lenders, including repayment incentives and Annual Percentage Rate (APR). What's so good about this? Most lender websites do not advertise their APR--they usually quote a percentage over prime rate. The APR is an "out the door" interest rate.
In the Webinar yesterday, the presenter showed me that students can retrieve matches to the lenders who participate in guaranteeing loans through their particular school. In addition, you can sort your results by repayment amount, total amount borrowed, interest rate, and lender rating. By clicking Compare Student Loans, you'll be asked a series of questions including your school, how much borrowed, and when you need the money. You'll then be given the comparison which you can then sort accordingly. The best part of this whole process is that you can see what your total loan (with interest) will be and your monthly payment! This will most definitely help you decide which lender is best for you.
In addition, loan consolidation is available. And, if at any time you're not familiar with a term, click on the blue bubble that looks like a cartoon bubble to get a definition. If you have questions about Borrower Benefits, or even wonder what this means, check out the right side of your results. You can refine your Borrower Benefits results.
Again, SimpleTuition is not a lender. They gain no monetary interest if you select a lender through them. Be sure to check out the Resources and About Us tabs to get more information. I think this is an excellent website if you are looking for the best possible interest rate and repayment plan.