GA THE UNIVERSITY PART YEARSLY MONDAY FEBRUARY 18,2003
Government Notice:
Student Loan Alert
PURSUANT TO AN AGREEMENT WITH THE NEW YORK STATE ATTORNEY GENERAL'S OFFICE, STUDENT FINANCIAL SERVICES, INC., DOING BUSINESS AS UNIVERSITY FINANCIAL SERVICES, IS PLEASED TO ANNOUNCE THAT IT HAS ADOPTED THE NEW YORK ATTORNEY GENERAL'S NEW CODE OF CONDUCT FOR DIRECT MARKETING OF STUDENT LOANS.
THE CODE OF CONDUCT GIVES STUDENTS IMPORTANT PROTECTIONS WHEN THEY SHOP FOR STUDENT LOANS DIRECTLY FROM MARKETERS AND LENDERS. HERE ARE SOME WAYS THAT YOU CAN PROTECT YOURSELF WHEN SHOPPING FOR STUDENT LOANS:
1. Make sure to consider all of your federal loan borrowing options before turning to more expensive private loans.
2. Don't be fooled by mailings from marketers or lenders that are designed to look like they come from the federal government.
3. Don't be enticed to take out loans from marketers and lenders who offer you prizes or sweepstakes. These incentives could distract you from learning the key terms of the loans these marketers and lenders are offering.
4. Beware of "teaser" or introductory interest rates; find out the actual interest rate and whether that rate will change.
5. Make sure a lender answers the following questions before you take out a loan:
What will my interest rate be? Lenders often advertise their "as low as" rates,but that may not be the rate you will get.
Will the interest rate change? If it will change, is there a cap on the interest rate?
What fees must I pay when the loan is disbursed?
What is the Annual Percentage Rate (APR)?
What will my estimated monthly payment be?
What is the total amount I will have to repay?
Is there a penalty if I repay the loan early?
Can I defer payments when I am in school, or if I am having financial difficulties?
How is unpaid interest capitalized (that is, added to the principal amount of the loan) during periods when I am not paying interest?
What benefits or rate discounts are offered,and what conditions do I have to meet to obtain the benefits?
If benefits are offered based on a certain number of "on-time" payments, how is "on-time" defined?
What will happen if I am late with a payment?
Will my loan be sold to another lender?
If my loan is sold, will the borrower benefits and interest rate discounts be lost?