Choosing a Lender

NC State University believes that students and parents want some guidance in choosing lenders from whom to borrow Federal Stafford and Federal PLUS Loans.  Thus, the university annually compiles a list of preferred lenders who have a proven track record of providing the best loan benefits to students and best customer services to students, parents and schools.  You may choose a lender from the list below, or select a different lender if you prefer. The basic terms of the loan (amount you may borrow, interest rate, length of time to repay the loan) will be the same regardless of the lender you choose. Lenders may, however, offer incentives to students that reduce the cost of the loan to you up front, such as by offering you a reduced loan origination fee, or lenders may reduce the cost to you in repayment, such as by offering a reduction in the interest rate you must pay after you make a certain number of on-time payments. We encourage you to choose a lender who offers the best combination of borrower benefits to meet your specific needs and/or interests. You can select a lender from the preferred lender list below or search a complete list of national lenders who participate in the Federal Stafford Loan programs.

You may indicate your lender preference by completing the Stafford Loan section of the NC State Institutional Financial Application, or you may notify the Office of Scholarships and Financial Aid of your lender preference via email, fax or verbal communication with one of the financial aid counseling staff. For a complete list of financial aid counseling staff, see our staff listing. While we cannot advise you regarding which lender to choose, we will be glad to answer any general questions you have about your eligibility for a Federal Stafford Loan.

The lenders listed below are listed in order of loan volume, with the lender listed first being the one chosen most frequently by NC State students.

Lender Code Key Features



College Foundation
1-866-866-CFNC
www.cfnc.org
 807037
  • No Origination fee.
  • Waiver of 1% Federal Default Fee.
  • 1.5% interest rate reduction for making monthly payments by automatic withdrawal and choosing electronic statements.
  • Immediate 1% interest rate reduction for on-time payments once repayment begins.


Wachovia
 830005
  • 1% origination fee
  • 0% default fee with most national guarantors
  • 1% principal reduction when the first 12 payments are made on time
  • .25% interest rate reduction for auto-debit payments
  • No pre-payment penalties

 


Bank of America
1-800-344-8382
www.bankofamerica.com/ studentbanking
801871

 
  • Waiver of 1% guarantee fee and no origination fee
  • 0.25% interest rate reduction with automatic debit
  • 3% principal reduction after the first 36 consecutive months of on-time payments when the borrower is signed up for electronic statements
  • 15-day grace period to ensure payments are on-time
 


Citibank
1-800-967-2400
www.studentloan.com
 827878
  • 0% origination fee and federal default fee
  • 1% automatic interest rate reduction as a graduation present.
  • 0.25% interest rate reduction for E-Z Pay auto-debit payment program.
  • No payments your last six months when all payments are made on time.
 

Chase
 808037
  • 0% origination fee
  • 0%-1% federal default fee
  • 2% principal reduction or money back based on the original loan amount after borrower's first 48 consecutive, on-time payments.
  • 0.25% interest rate reduction immediately at repayment with ACH via phone or online enrollment.

The university is guided by the following basic principles when selecting lenders to be included on the university’s preferred lender list:

  1. The lender must offer a no-fee loan or lowest fee loan permitted by federal regulation to borrowers

  2. The lender offers substantial repayment incentives that save borrowers money when in repayment

  3. The lender has a proven track record of providing quality customer services both to the borrower and to the institution

  4. The lender accepts electronic loan certifications and adjustments to loan eligibility through the Electronic Loan Management (ELM) system

  5. The lender has a proven track record of servicing loans in repayment, thus reducing the incidence of borrower default   

Other consideration for choosing preferred lenders is given to:

NC State offers a side-by-side comparison of lender benefits including benefits that appear on the front end of the loan, at disbursement, or during the course of repayment.  The lender comparison chart is accessible either through our web site or in hard-copy when requested.  The comparison includes borrower benefits that are both quantifiable and easily obtainable. 

For a more detailed description of how the Office of Scholarships and Financial Aid identifies preferred lenders, please see a copy of our institutional policy. 

Please know that there are a number of other lenders that you may wish to consider when deciding which lender to use.