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| 1. Does the lender offer
money-saving options for your loan? |
| Standard charges are a 1%
Federal default fee and a 3% origination fee - 4% of the amount you
borrow that you never see! Some lenders do not charge the Federal
default fee, and some may discount the origination fee. That can
lead to significant savings. |
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| College Foundation
does not charge the Federal default fee and gives you back an amount
equal to the origination fee in the year following your loan
disbursement. |
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| 2. Will your lender make
repaying the loan easier by reducing interest rates for prompt
payment? |
| Some lenders offer a .25%
reduction for automatic electronic payments and a 2% reduction after
48 months of on-time payments. |
| |
| College
Foundation offers a 0.75% interest rate reduction for on-time
payments and an additional 1.25% reduction for selecting electronic
statements and payments by automatic draft. See details of the NC Advantage for loans
made on or after July 1, 2006. If you have previous loans, call us
toll free at 866-866-CFNC to review benefits in effect for those
loans. |
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| 3. Does the lender ever sell
its loans? |
| Some lenders sell loans to
secondary markets, meaning that you will make payments to a new
"owner" of your loan. Sometimes loans are sold to more than one
secondary market, which could leave you with payments each month to
more than one loan "owner." Sending separate payments to multiple
loan owners can be expensive and confusing. |
| |
| College
Foundation NEVER sells PLUS loans. You deal with one point of
contact throughout the life of your loan. That makes things much
easier to manage, less confusing, and eliminates the risk of
multiple minimum monthly payments. |
| |
| 4. Who services your loan? |
| Does your lender contract out
servicing (keeping up with your changes of address, your loan
status, sending you bills, receiving your payments, processing your
deferment requests, answering questions, etc.) to a third party
contractor, or does it service the loans itself? If your loans are
serviced by multiple contractors in several states, confusion and
potential errors may result. |
| |
| With College
Foundation, you never have to worry about your loan being serviced
by an out of state contractor. The Foundation services all its
loans, from the time the loans are made until the time they are paid
in full. The staff is right here in North Carolina, ready to provide
excellent customer service. |
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| 5. Is borrowing from one lender
preferable? |
| You should generally borrow
all PLUS Loans from the same lender to keep your loans in one
location and for consistent information and service. |
| |
| |
| When you
compare College Foundation, Inc. with other PLUS Loan
lenders, you'll find the benefits available to you, the in-state
location, and the focus on education loans makes College Foundation
clearly your best choice for savings and service. |
| |
|
Click here to learn how to save money on your PLUS loan. |
*Some colleges participate directly in the Federal Direct
Loan Program. In these cases, there is no choice of using College
Foundation, Inc., a Federal Family Education Loan Lender. Follow the
instructions of these colleges to get the loan. |
