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Choosing a Lender

NC State University believes that students and parents want some guidance in choosing lenders from whom to borrow Federal Stafford and Federal PLUS Loans. Thus, the university annually compiles a list of lenders who have a proven track record of providing the best loan benefits to students and best customer services to students, parents and schools. You may choose a lender from the list below, or select a different lender if you prefer.

What's the difference?

The basic terms of the loan (amount you may borrow, interest rate, length of time to repay the loan) will be the same regardless of the lender you choose. Lenders may, however, offer incentives to students that reduce the cost of the loan to you up front, such as by offering you a reduced loan origination fee, or lenders may reduce the cost to you in repayment, such as by offering a reduction in the interest rate you must pay after you make a certain number of on-time payments. We encourage you to choose a lender who offers the best combination of borrower benefits to meet your specific needs. You can select a lender from the list below or search a complete list of national lenders who participate in the Federal Stafford Loan programs.

Direct vs. FFELP

NC State participates in both the Federal Direct Loan program and the Federal Family Education Loan Program (FFEL), and students/parents have the option to borrow from either. Both of these loan programs are federal loans that offer the same interest rates and repayment terms. The primary difference between the two is in the source of the funds; with Direct Loans, the federal government lends the money to the student/parent directly via school certification, and in the case of FFEL the funds are provided by the banking community.

How do I let you know my choice?

You may indicate your lender preference by completing the Stafford Loan section of the NC State Institutional Financial Application, or you may notify the Office of Scholarships and Financial Aid of your lender preference via email, fax or verbal communication with one of the financial aid counseling staff. While we cannot advise you regarding which lender to choose, we will be glad to answer any general questions you have about your eligibility for a Federal Stafford Loan.

Frequently Chosen Lenders

The lenders listed below are listed in order of loan volume, with the lender listed first being the one chosen most frequently by NC State students.

 

How does NC State choose these lenders?

The university is guided by the following basic principles when selecting lenders to be included on the university’s preferred lender list:

  • The lender must offer a no-fee loan or lowest fee loan permitted by federal regulation to borrowers
  • The lender offers substantial repayment incentives that save borrowers money when in repayment
  • The lender has a proven track record of providing quality customer services both to the borrower and to the institution
  • The lender accepts electronic loan certifications and adjustments to loan eligibility through the Electronic Loan Management (ELM)system
  • The lender has a proven track record of servicing loans in repayment, thus reducing the incidence of borrower default
  • Number of years in student loan business
  • Demonstrated security of borrower information
  • Commitment to helping shape national student loan policy
  • Policy on the sale or sharing of borrower information with other parties

NC State University adheres to the Code of Conduct which was created by the UNC system regarding the university's relationship to lenders. The goal of the Office of Scholarships and Financial Aid is to provide students with information they need to make good decisions about borrowing, and to select the types of loan(s) and the lender(s) that offer the best terms for their particular needs.