Top 10 questions to ask a lender before you sign over your student loans:

  1. How long have you been in the business?
  2. Do you have a history of selling loans? If so, do you assure that your advertised borrower benefits transfer to the new holder of the loans?
  3. What is your repayment benefit? In other words, what incentives do you offer with your loans? (Most lenders offer some kind of interest-rate discount—but beware the fine print.)
  4. What do I need to do to earn the full repayment benefit?
  5. What can disqualify me from receiving this benefit?
  6. If I am disqualified, do I have any chance to get it back?
  7. What happens if I miss a payment?
  8. What is the total dollar amount you have paid back to students in the form of repayment benefits (such as interest-rate reductions)?
  9. For each of your borrower benefits, what percentage historically qualify for the full value of that benefit? If you don’t have a history, what percent of borrowers have been disqualified so far?
  10. What kind of customer service do you provide? Where and how are your phones answered?