Does the lender offer money-saving benefits?
Choose a lender that offers competitive benefits such as discounts on the interest rate when payments are made on time. Compare different lenders to see which can save you the most money in the long run. • Will the lender sell your student loans? Many lenders sell their loans to other lenders and to the secondary market. The secondary market is made up of many private and state-run organizations that specialize in buying student loans. Although there is nothing wrong with this practice, it can be confusing to students. Each time your loan is sold, you will be dealing with a new owner and their policies, and not the people who gave you the loan. But rest assured, the interest rate and terms of your loan will not change. • Tip: To avoid confusion, choose a lender that sells to only one secondary market – and use that lender for all your student loans. That way, all your loans will be in the same place. • How does the lender capitalize interest payments? With capitalization, interest paym
