Maybe you’ve noticed stories on possible inappropriate relationships between schools and student loan lenders in the news. Does this mean you should ignore the advice your financial aid officer gives you and strike out on your own? Hardly.
While you have the final say in the lender you choose for your loans, schools have saved students a lot of money by pointing them in the right direction and offering valuable advice.
Consider this: Barron’s Online points out that when lenders offer loans through schools, the terms are much better for the students than when lenders offer those very same loans directly to students: “Clearly, private student loans made by lenders as part of official school programs offer better terms than the very same lenders do when contacted directly by students. The proof: The ‘gain-on-sale’ profit [a lender] registers on its direct-to-consumer student loans done through the banks is nearly twice as large as that from its loans arranged through the so-called school channel” (The Perils of Bankrolling Slackers, by Jonathan R. Laing, April 2, 2007).
Of course there are always questions you should ask any lender before signing for a loan, but financial aid officers remain your ally when it comes to helping you make the right loan decision.
A lot has been said on the issue by legislators and the media, but we want to hear from you. What is your experience with your school’s financial aid office? Do you think it’s a valuable resource? What other sources did you find helpful?