Finding the ideal student loan lender can be a nightmare if you plan on driving from bank to bank. If you only go to your school for suggestions, you could end up with unfavorable rates or even worse, unfavorable terms that could end up costing you a fortune in the long run. Shopping around to compare student loan lenders is a very smart move. The problem is that many people do not know where to begin.

The good news is that finding the right student loan has never been easier. Thanks to the internet, students and parents can now shop multiple top lenders without ever leaving their homes. Web sites are available that have comparison tools to help you compare loans and lenders. This can make a huge difference in the amount that you end up paying or the terms that you end up with.

Shop around for loans that you may qualify for. If you have good credit, then you can get some great rates and terms for repayment. If you do not have perfect credit, relax. There are still loans out there that will fit your needs. You may have questions about which facts you need to compare.

The first thing to look for is a good APR. Percentage rates can affect how much you pay in the long run. Fixed rates make repayment a lot easier to plan for. Fluctuating rates can change your minimum payment with short notice and get you into trouble. If you do accept a rate that can change, find out if it changes yearly or on any other type of schedule. Be prepared for a larger payment if it happens to come up.

Ask about your monthly minimum payment. No matter how great terms and rates are, you have to be able to pay the monthly rate or you may not keep those great terms for long. Some loans have deferred payments that can let you suspend payments until after graduation. This brings us to terms.

Find out about origination fees. Many loans have an origination fee, which simply means that you will have to pay a lump sum up front before you can get the loan money. This amount can be a hefty sum, so make sure you ask before you accept a loan. Find out about any other special incentives and compare them from lender to lender, loan to loan. Some lenders reward you for on time payments by lowering your rates. There may be other useful terms of the loan that you may not know about until you ask.

Once you narrow down the lenders and loans, make yourself a chart and compare incentives and rates. Using an online source to do this can save you a lot of time and energy. Getting your student loans should not be a shot in the dark. It is an important decision that you do not want to take lightly.

About the Author: Evelyn Saunders, a retired teacher, is the editor for student-loans.net, a provider of student loans and information on how to get private student loans as well as consolidation.

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