Student loans are big business. With nearly every college student needing to take out student loans on some level (even if it is just to help with living expenses), student loans are an $85 billion industry. Indeed, reports ABC News, some student loan lenders even pay consulting fees to loan officers:
[New York attorney general Andrew] Cuomo’s investigation has exposed cases of university student loan officials receiving “consulting fees,” stock and other benefits from a small but aggressive lender, Student LoanXpress, which was trying to win a greater share of the student loan market.
You can see how this could be a problem. Before choosing a student loan servicer or lender, make sure you look at your options. Check to see who your university goes through, and check to see what other options are available. Even though a student loan officer may push one particular program, most colleges and universities offer a variety of lender and loan options. Ask for complete information, and follow up on it yourself.
If you need private student loans, consider looking into several servicers. Web sites like TERI.org let you look at rates and terms offered by a variety of lenders. Carefully considering student loans can save you money in the long run.