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Gallery of Student Loan Lenders

By Jim Bruene on November 10, 1998 10:37 AM | Comments (0)

1998-Nov-StudentGallery01.jpg

Wells Fargo is running a student loan banner on top of the financial aid category at Yahoo!
dir.yahoo.com/Business_and_Economy/Companies/Education/Financial_Aid/Lenders/


 

Access Group
www.accessgrp.org

 

The Access Group (Wilmington, DE) is a nonprofit organization that offers a series of “Access” branded college loans for graduate students, in addition to standard Stafford loans. All loans are made by National City Bank (Cleveland, OH; $64.3 billion; 1.4 million ATM cards).

1998-Nov-StudentGallery02.jpg

* Depends on credit history; ** Aggregate maximum across all government and private loans; *** Time to repay after graduation

Crestar

www.servusfinancial.com/crestar

Crestar has developed the “eSeries Loan Program” including eMax Educational Loan and eCon Consolidation Loan. The online application resides on its vendor’s server, Servus Financial.


 

American Express

www.americanexpress.com/edloans

AmEx’s student loan Web.

American Express (New York; 42.7 million cardholders) has one of the more user-friendly student loan Web sites. It features explanations of various loan programs, online applications, a PLUS loan preapproval form to see if your credit qualifies, and a Second Look feature if your credit doesn’t cut it.

It still uses too much jargon and could use additional detail in its explanations. It also has a flaw in its repayment calculator at www.americanexpress.com/edloans/step/sheets/docs/staf.html The lesson here is to test your calculators. Even the most rudimentary usability testing would have uncovered the AmEx flaw.

The Flaw: The repayment calculator is an important financial tool for the college-bound. It tells you what your monthly payment will be after you graduate. AmEx’s flawed calculator can easily return results 75% or more too low. Users are asked to enter estimated college costs for up to five years of school. But if you neglect to change the “number of years in school” from its default setting of one, the repayment calculator ignores all your college costs after the first year. AmEx should reprogram the calculator to assume that if an annual cost is entered, the student is planning to attend school that year.

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