Entrance Counseling for Stafford Loans
Entrance counseling is a procedure required for Stafford loans before funds will be disbursed. The main purpose of entrance counseling is to make sure that you, the student, understand your rights and responsibilities with respect to that loan.
How do I Choose a Lender ?
Federal guidelines regulate the primary features of student loan programs. However, many lenders offer incentives for borrowers. One current incentive program is a reduced origination fee. Origination fees are the fees taken off of your loan before you receive a disbursement. The maximum allowable origination fee by federal regulation is currently 3%. A reduced origination fee results in a net increase in your loan proceeds each semester. Other incentives may be offered when you are required to begin repayment of your loan. Many lenders are currently offering an interest rate reduction after a set number of on-time payments and/or for having payments electronically withdrawn from a checking or savings account.
Students have the right and ability to select the lender of their choice for the Stafford loan. UW-Stout does not endorse any one lender, but has provided a list of our most commonly used lenders in the link below. All lenders listed have demonstrated a commitment to providing service to our students and have electronic fund capabilities with UW-Stout, which ensures smooth processing of your Stafford loan.