Stafford Loan Lender Options
You must complete a Stafford loan application with the lender of your choice in order for you to be able to use the loan listed on your Award Notice to pay your fees for 2008-09.
As a first-time borrower, you have the right to use the lender of your choice. In order to assist you in this process, the Office of Financial Assistance is providing you with a list of three lenders that have a proven history of good customer service and dependability. Keep in mind that this list is not meant to limit your options of lenders or to indicate that FMU prefers that you use a particular lender.
CHASE **See the next section below for a description of origination and default fees**
- 1.5% Origination Fee (effective July 1, 2008…0% origination fee until then)
- 1% Default Fee (unless you use FMU’s preferred guarantor which is TG then there is a 0% default fee)
- If you choose Chase, go to www.chasestudentloans.com and select ‘Stafford Loans…Apply Now’
SC STUDENT LOAN **See the next section below for a description of origination and default fees**
WACHOVIA **See the next section below for a description of origination and default fees**
- 1% Origination Fee
- 1% Default Fee (unless you use FMU’s preferred guarantor which is TG then there is a 0% default fee)
- If you choose Wachovia, go to www.wachovia.com/stafford and complete the application.
Helpful Definitions:
Origination fee: A fee the borrower pays to the lender for originating a student loan. This fee is subtracted from the total amount borrowed by the student. Example: A student borrows $3500 and the origination fee is 1%...the amount that the lender will send to the university is $3465 if the default fee is 0%.
Default fee: A fee held by loan guaranty agencies to ensure that reimbursements can be made on defaulted student loans. This fee is also subtracted from the total amount borrowed by the student. Example: A student borrows $3500 and the default fee is 1%...the amount that the lender will send to the university is $3430 if the origination fee is 0%.
**If a lender charges an origination and a default fee then both will be subtracted from the total amount borrowed by the students. Example: A student borrows $3500 and the origination fee is 2% and the default fee is 1%...the amount that the lender will send to the university is $3395.
