Choosing a Private Loan Lender

If you choose to apply for a private loan, you will still have to select a lender. Often times, borrowers look to their college to provide information or recommendations on the many lenders offering educational loan products. Manhattan College does not benefit from lender choice in any way. All college employees subscribe to a Student Loan Code of Conduct. You are also encouraged to read the Federal Trade Commission's recommendations on how to avoid deceptive loan offers.

Students and families should research the varying rates and benefits offered by each lender carefully before selecting a private loan. We compiled a Private Loan Lender List to assist you in learning more about private lenders and their loan application guidelines, interest rates, maximum borrowing limits, and repayment plans. However, you are not limited to our suggestions and may choose any lender you wish; SFS will work with any lender.

Our office collects lender information through proactive requests for information (RFI). Lenders listed are selected by SFS on the basis of the following:

• Customer Service
• Processing experience
• Competitive loan terms
• Benefits
• Application fees
• Ease of application process

We are available to answer your questions and help you understand your rights and responsibilities in regard to financial aid and borrowing educational loans.

Questions to Ask Lenders before Applying

1. How many years has the lender been working with student loans?
2. What financial institution funds/backs the lender’s student loan program?
3. Does the lender sell their loans to a secondary market?
4. Does the lender use their own servicing center or a third party to service their loans?
5. What customer service hours are available?
6. What online methods for application and repayment are available?
7. Does the lender reduce or eliminate fees or offer rewards/incentives for responsible repayment?
8. Which academic levels (graduate vs. undergraduate) are eligible?
9. Is satisfactory academic progress required to borrow the loan?
10. What is the amount of any origination or repayment fee percentage?
11. What is the annual borrowing limit permitted (aggregate)?
12. Is the interest determined on Prime Rate or LIBOR rate?
13. Is cosigner release available? After how many consecutive, timely payments?
14. Is there a prepayment penalty?
15. What is the maximum repayment term?
16. What are the repayment options?
17. Other questions, as suggested by NYS HESC

All loan policies, procedures, and the lender list are reviewed regularly by representatives of Student Financial Services of Manhattan College.