Know about student loans before signing

By: Emily Green

Published: Friday, January 6, 2006

Most college students in the United States have at least one student loan to their names by the time they receive their diplomas. According to an article at www.familyeducation.com, more than 60 percent of undergraduate college students in 2000 graduated with an average debt of $17,000.

As the cost of education does not appear to be decreasing, it’s best to know as much about the different lenders on the market as possible. Cindy Bradley, director of financial aid, said Savannah College of Art and Design staff members research lenders by “attending financial aid conferences about alternative loans, speaking with other schools and reading articles in publications such as the Greentree Gazette, which does an annual comparison of lenders and their products.”

Citibank, Nellie Mae, Campus Door and Wachovia are preferred lenders for SCAD students. The college’s Web site provides links to preferred lenders under the contact section of the financial aid guide, www.scad.edu/admission/financial/financial-aid/guide. Additional lenders are available for SCAD e-Learning students; visit www.scad.edu/scadelearning/financial_services/alternative.cfm. “These are reputable lenders who are leaders in the industry and have developed a close working relationship with SCAD,” Bradley said. “Our preferred lenders offer the most current options available, i.e., payment options, rate scales, etc. They have reduced paperwork for processing loans, all have online applications, and they offer benefits to our students based on the relationship they have with us.”

Some lenders are better suited for certain students than others, depending on what level of education is being pursued and whether the student is from the United States or another country.

“Nellie Mae offers a loan specifically for graduate students and it takes into consideration their level of program, the need for higher borrowing limits and a different debt-to-income ratio,” explained Bradley. “Campus Door works well with first-time students and will lend to those with no credit but a credit-worthy co-borrower. Citibank will lend to international students with a U.S. resident for a co-borrower, and Wachovia offers a loan to students who are non-degree-seeking, but are in the [SCAD e-Learning] certificate program.”

The financial aid department at SCAD maintains relationships with lenders who best serve the students at the college, and continually researches and evaluates new offers to see if they benefit SCAD students.

“We strive to have preferred lenders that meet all student needs,” Bradley said.

For more information, call the SCAD financial aid department at (912) 525-6287.


Green is a publications editor.