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| 1. Does the lender offer
money-saving options for your loan? |
| Standard charges on a Federal
Stafford Loan currently include a Federal default fee and an
origination fee which some lenders deduct from the amount of your
loan. Other lenders may pay these fees for you. Be sure to ask how
your prospective lender handles these fees. |
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| There are zero
fees on a loan from CFI; the origination fee and the federal default
fee are paid on your behalf. |
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| 2. Will your lender make
repaying the loan easier by reducing your interest rate? |
| For Stafford loans first
disbursed on or after October 1, 2008, CFI will reduce your interest
rate by .25% when you make payments by automatic draft. |
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| For Stafford loans first
disbursed between July 1, 2006 - September 30, 2008, CFI will reduce
your interest rate by 1% for on-time payments when you start
repayment. You can also reduce your interest rate another 1.5% by
making payments by automatic draft and electing to receive
electronic statements. If you have loans made before July 1, 2006
call us toll free at 866-866-CFNC to review the benefits in effect
for these 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 holders can be expensive and confusing. |
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| CFI has never sold
or transferred loans and has a long-term commitment to our borrowers
to make it much easier to get your questions answered. |
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| 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. |
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| CFI services all
the loans we hold from the time they are made until the time they
are paid in full. And our 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
from the same lender for all your student loans to keep your loans
in one location and for consistent information and service. |
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| If you choose to
borrow from CFI, our Lender Code is 807037. Follow the directions
from your school on how to complete the loan process; CFI offers
online or paper applications (Master Promissory Note). |
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| 6. Does your lender stand
behind its benefits? |
| Some lenders offer benefits
for only particular categories of standards or for a limited time.
CFI benefits on loans, once received by a borrower, remain in effect
for the life of these loans as long as the borrower continues to
meet the associated eligibility requirements. |
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| Apply
Now |
