eStudentLoan.com: Compare Student Loan Options Before You Borrow - Audio Available

SAN DIEGO, Aug. 14 /PRNewswire/ -- Borrowing to pay part or all of your educational expenses has become a necessity for most students. However, what many students don't know is that in most cases, you have a choice when it comes to selecting a lender for your Federal Stafford, PLUS and Private/Alternative education loans. Choosing the right lender and loan program can save you thousands of dollars.

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Choosing a student loan may seem like a daunting task, but rest assured that services like eStudentLoan's LoanFinder make it easy for you to obtain a loan that's right for you.

In order to get the best deal, you need to understand a number of loan costs and features. Here are some of the items you should consider:

  *  Annual Percentage Rate -- The APR is the annual cost of your loan
     including fees and other charges in addition to interest.  APR's are
     calculated based on the amount of the loan, the amount of time it will
     take to repay the loan, the effect of fees or repayment incentives and
     the interest rate charged on the loan.  Tip: APR is not the same as the
     interest rate.  The interest rate is only one factor in calculating
     APR.

  *  Repayment Incentives -- Many loan programs will lower the cost of your
     loan when you take certain actions or repay your loan on time.  For
     example, some lenders offer a 2% reduction on the interest rate charged
     for you loan if you make 48 consecutive on-time payments.

  *  Loan Limits -- Look at how much you may borrow under any given loan
     program.  For Federal Stafford loans, the loan amounts are based on
     your year in school (Upperclassmen have higher limits than Freshmen and
     Sophomores).  Private loans vary by lender.  Make sure you look for a
     loan that covers your expenses, but be sure to borrow only what you
     need.

  *  Pre-approval -- Many lenders offer quick pre-approvals on PLUS and
     private loans.  Sometimes a pre-approval notice from your lender can be
     used to clear the way for you to attend classes, even though you still
     have a balance on your bill.  Contact your school to discuss your
     options.

  *  Cosigner -- Private loans are credit-based, which means students will
     need a credit-worthy cosigner in order to take the loan.  Some loans
     will release the cosigner from liability after a certain number of
     payments.

  *  Repayment Options -- Many loans will let you defer payments (either
     principal only or principal and interest) while you are in school, but
     not all of them.  Check the details before choosing a loan.

  *  Interest Capitalization -- If you choose to defer payments on your loan
     while you are in school, it's important to know when interest is
     capitalized.  A loan whose interest is capitalized once at repayment is
     generally less expensive in the long run than a loan whose interest is
     capitalized monthly or quarterly while you're in school.

  *  Repayment Term -- How long does the loan program allow for repayment?
     Ten years is the standard, but some loans let you string out payments
     over a longer horizon.  Remember, the sooner you are able to repay your
     loan, the less you'll pay overall.

  *  How's Your Credit? -- PLUS loans and private loan approvals are based
     on credit worthiness.  Many private loans charge different interest
     rates and fees based on your credit score.  Having a better credit
     score often means getting a better rate, so it's worthwhile to
     periodically review your credit report for any errors.  If you have a
     choice of cosigners, pick one with a good credit rating.

By carefully comparing each loan program's terms and options, you'll be sure to get the right loan for your specific needs. Using a free student loan comparison tool like eStudentLoan's LoanFinder eliminates the complexity -- just answer a few simple questions and the loan finder will find loan options and compare them side-by-side for you. eStudentLoan makes it easy to understand so you can make an informed decision about your education loans.

About eStudentLoan.com

eStudentLoan has been helping students and their parents compare their education financing options online since 1998. http://www.estudentloan.com/

  Contact Info
  Shawn Lindstrom
  703-837-1636
  slindstrom@goalfinancial.net