College: Preferred Lenders List….Can You Trust It?

Many colleges will send you information about student loans and tuition rates. In fact, you may be bombarded with loan applications, financial aid information and credit offers. One thing that you will probably receive from the school of your choice is a preferred lenders list. This is a list of recommended lenders that provide student loans. Many people blindly go with the first company that accepts them from this list. Some will try the first three or four and then go with the best from that list. Is this really safe? How much extra are these misinformed people paying in the end? It could be more than you think.

Higher education is expensive. Many more students are finding it difficult to avoid getting student loans. Students and parents alike are most likely tired of filling out paperwork and researching schools by the time they apply for a student loan. So, this preferred lenders list seems awfully convenient for choosing the best loan for you, right? Not necessarily. Most schools refuse to disclose how they come up with this list. Many, many schools are under scrutiny for unfair practices when it comes to student loans.

Lots have been caught receiving illegal kickbacks from lenders in exchange for recommendations. The result is trusting parents and students ending up with extremely high interest rates, unfair loan terms and excessive fees. School employees receive cash, trips, cruises and gifts for recommending this bad deal as your best bet. Not all schools are corrupt, but it could really pay off to do some of your own research when searching for a student loan lender.

Fortunately, in this day and age, we have the internet at our fingertips. We do not have to take the word of the suited man behind the desk anymore. We can simply search for student loan lenders online. Companies like www.student-loans.net offer student loans from a multitude of lenders on one convenient site. You can narrow down a search for a loan that meets your needs and compare each lender, side by side, with no biased opinion to cloud your perception. Loan terms, percentage rates, fees and benefits are clearly defined for you to make an informed decision.

Some schools actually do research the preferred lenders list in order to simplify the student loan process for parents and students. So, you do not want to assume that every preferred lenders list you see is a scam. But, you should be aware that it may be preferred by the school and not you. Shop around before you commit. Student loans are a very long commitment and you want to be sure that you select the one with the terms that fit your need.

About the Author: Evelyn Saunders, a retired teacher, is the editor for student-loans.net, a provider of student loans and information on how to get private student loans as well as consolidation. For more information, please visit http://www.student-loans.net.