Once you have this information in hand, make sure you review it closely to decide which options are best for your particular situation.

Initial Questions

• What is the lowest interest rate and fee combination that you offer, and how do I get this rate?
• How much can I borrow without reducing my eligibility for federal, state, or institutional aid?
• How often do you capitalize interest?
• What steps do I have to go through to obtain a loan with your company?
• What is the time frame from deciding to obtain a loan with your company to receiving the funds?
• What is the maximum I can borrow both annually and cumulative, both with and without a co-signer?
• Do you require a co-signer?
• How can my co-signer be released?
• Are payments required while I am in school? If so, just interest, or principal and interest?

Interest Rate Questions

• Is the rate only for a limited period of time (i.e., introductory rate) or for the duration of the loan?
• Is the interest rate fixed or variable?
• If variable, is there an absolute maximum or minimum rate, both with and without a co-signer?
• If variable, how often is the interest rate adjusted?
• If variable, how is the interest rate determined?
• If fixed, what is the lowest rate I can get on a fixed-rate loan, both with and without a co-signer?

Repayment Questions

• When does repayment begin?
• Is there a grace period before I have to start repaying the loan? If so, how long is it?
• How long can I defer payments while in school?
• Under what circumstances may I defer payment after graduation (e.g., while attending graduate school, during residency, while studying for the bar)?
• How much will I owe when I do start making payments?
• How long will I be repaying the loan?
• Is there a penalty for early repayment?
• Do you offer on time payment or any other discounts?
• What percentage of borrowers actually receive the discounts you offer?
• Are your discounts guaranteed or are they subject to change later?

Problems with Repayment Questions

• What if I have problems?
• Do you have any deferment or forbearance options?
• Will I lose any benefits for just one late payment or if I ask for a change in the payment schedule?
• What causes me to lose an earned benefit?
• If I lose a benefit, how can I gain it back?
• If I have difficulty making payments (“economic hardship”), do you allow me to defer or reduce my payment temporarily?
• Under what circumstances and for how long can I defer or reduce my payments?
• Can the loans be discharged upon death or permanent disability of student?

Other questions to ask if applicable to your situation:

• Do you offer any discounts if I have a current relationship with you (bank account, credit card, car loan, mortgage, etc.)?
• Are there any restrictions as to where I live or attend school?
• Are these loans available to international students/non-citizens? If so, do I need a U.S. citizen or permanent resident to be the co-signer?
• Do I have to be at least half-time status?
• Do I have to be in a degree-seeking program? If not, do you require school certification?
• Can I use this loan to study abroad?
• Can I use this loan for past due semester charges?

• Is the maximum yearly or cumulative amount high enough to cover my program?
• Do I have a co-signer? If so, will they be willing to sign each year until I graduate?
• Can I afford to make payments while in school?
• Are the higher fees made up for by the lower interest rate or vice versa?
• Can I realistically expect to benefit from these back-end benefits? If so, do they make one loan better than another in the long run?
• Are the grace period or deferment or forbearance options more valuable to me than a lower interest rate?

• Co-signer released after a certain number of consecutive monthly payments.
• Interest rate reduction for auto-debit.
• Interest rate reduction after a certain number of consecutive monthly payments.
• Interest rate reduction for in-school payments.
• Interest rate and/or principal reduction upon graduation or starting payments.
• Grace period after graduation (or during residency).
  

• LIBOR (London Interbank Offered Rate): This is the average interest rate (over three months unless otherwise specified) paid on deposits of U.S. dollars in the London Market. Many lenders' interest rates are LIBOR plus a percentage.  The rate can be checked here.
• PRIME: The Prime Lending Rate as published in the Wall Street Journal. This is the rate banks charge their most creditworthy customers. Many lenders' interest rates are PRIME plus a percentage. The rate can be checked here. 
• APR (Annual Percentage Rate): This rate factors in interest, fees, and other terms of the loan.
• Cost of Attendance (COA): The maximum a student can receive in total financial aid for the academic year (as determined by the school); this includes funds for tuition, fees, books, and living expenses. Students can check this amount on SURFS.
• Other Aid Received: Any other financial aid received by the student (grants, scholarships, loans, stipends, etc.). Unless lenders have a lower limit, the maximum the school will certify per year for a Private/Alternative Loan is COA minus Aid.