Fed Financial

It is a good idea stick with one lender for all student private loans, or stick w/the same for for all loans?

I have gone through the same private lender (BOA) for all my federal and private student loans. However, this year I am thinking of borrowing from citibank for my private loan needs. Is it a wise move to switch to a new lender for my next loan, or should i stay with the same one? Even though citiassist has a slightly better rate, will my payments be more once i get out of school because the new lender will think i only borrowed 10,000 and charge me more based on that fact that they think that i can afford to pay more back? In other words, will having 2 lenders cause them both to think i only have borrowed from them, and consequently mean higher payments for me than if i were to stick with one lender?

Public Comments

1. There are records. If they charge too much, you can show them a copy of a statement from your other loans. It doesn't really matter who you get your loans from - they usually end up being sold to a separate company anyway.
2. Actually one of the benefits to having one lender is that you do not have to worry about tracking down two or more bills. Also most lenders should be competing for you to stay with them so make sure you really look at the overall savings of your benefits, not just a better interest rate. Both lenders you mentioned can help to really understand what to look for in a lender as fas as overall benefits, not just the rate. Look at customer service, combined billing, online managing of your bill. Other benefits like interest rate reduction, incentive for on time payments and other things. Talk to both lenders first. But remember combined billing is a plus. 4 years in school you dont want like 8 bills coming at ya! : ) Your payments typically are based on a repayment term. You have to ask what the terms are with Citi and BOA. If they are the same terms and lets say they charged you the same interest then it would really not matter you are just splitting the bill instead of it going to one place. Did I make sense. Hope I did!
3. Maybe you can try below website to get the information you need. It's about student loan consolidation articles for your second opinion.
4. stay away from private internet lenders wanting $ up front for there phony fees.If they are asking for $ up front they are SCAMS,report them to the IC3 division of the FBI and your states Atty. Generals office and the FTC.It is 100% illegal to ask foe fees up front in this country of the USA