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Federal Family Education Loan Program Participants
About Federal Loans
Federal programs such as Stafford Loans for students and PLUS Loans for parents and graduate and professional degree students have fixed interest rates ranging from 5 to 8.5 percent. Private or alternative loans typically have interest rates that rise and fall with the economy. Private loans rely on credit reports; federal student loans don't.
Subsidized Stafford loans charge a fixed 6.8 percent rate starting six months after you leave school. If you don't qualify for a subsidized Stafford Loan, your next option is an unsubsidized Stafford Loan, which charges interest immediately but gives you the option of not paying interest until six months after you leave school. Parents and professional and graduate degree students can borrow from the PLUS program at rates capped at 8.5 percent.
Using A Preferred Lender List
Texas Southern University offers you the option of choosing a lender from their preferred-lender list. You may use this list as guide in selecting the lender you want to process your Federal Stafford Loan Application. The preferred lender list is only a starting place when shopping for financing. You may select a bank, saving and loan or credit union not on this list, but before you do check with that institution to make sure they participate in the Federal Stafford Loan Program.
Important Considerations
Important considerations are the stability of the lending institution within the past 3 years, quality of the customer service, ease in accessing student loan account information, ability to consolidate and repayment incentive programs. Students should consider items such as the ability to consolidate, whether the lender holds or sells the loan for the life of the loan and the type of debt management tools the lender offers to their clients.
Check the repayment terms, incentive programs and fine print carefully. Not all students can take advantage of all the benefits lenders advertise. Choose the loan that offers the best upfront discounts, such as waiving both origination and default fees, or other immediate discounts. Benefits that are promised several years down the road may not help you if you consolidate your loans or get into financial trouble.
| Lenders |
Web Site |
Lender Code |
Phone Number |
Borrower Benefits |
| Chase |
www.chasestudentloans.com/custom/tsu/ |
803000 |
800-487-4454 |
.25% automatic interest rate reduction for students that sign up for automatic debit. |
| Sallie Mae Education Trust |
www.salliemaeedtrust.com |
802218 |
800-891-1413 |
.25% percentage point rate reduction for students using automatic debit |
| Wachovia Education Finance |
www.wachovia.com/education |
830005 |
800-338-2243 |
.25% interest rate reduction for auto debit payments. |
| Bank of America |
www.bankofamerica.com/studentbanking |
832733 |
800-344-8382 |
.25% off of rate with a Bank of America Checking or Savings Account after first on-time payment. ACH not required. |
| Nellie Mae |
www.nelliemae.com |
829076 |
800-367-8848 |
.25% percentage point rate reduction for students using automatic debit |
| Smart Financial Credit Union |
www.smartcu.org |
827999 |
800-392-5084 |
None |
| Wells Fargo |
www.wellsfargo.com/student |
807176 |
800-658-3567 |
None |
| Citibank |
www.studentloan.com |
826878 |
800-967-2400 |
Save up to .75% as soon as you enter repayment: .25% interest rate reduction for auto debit .50% interest rate reduction at repayment |
Last updated 06/30/2008
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