2008 Woodie Awards
Webster enters loan market
By: Kevin Huelsmann
Issue date: 11/16/06 Section: News
- Page 1 of 1
Banks now have one more competitor in the graduate student loan market. Webster University has announced it will now act as the lender for Stafford loans for graduate students.
As with all Stafford loans, the rates will still be set by the government.
"We partnered with Wachovia, who offered us with a line of credit to offer these loans," said Jon Gruett, director of financial aid. "Any revenue from the program goes back into scholarships or paying down loan fees."
Webster's Financial Aid Office processes more than $130 million in student loans every year. To figure out who will handle the loan, the financial aid department relies on past experience and the features of the loan being offered.
"We point out the options to students," Sarah Wieck, a financial aid counselor at Webster, said. "We look around and see what's best for each student and their situation. We know from past experience who will be best for students."
Financial aid helps students find lenders for federal and private loans. Federal loans follow government regulations on things such as interest rates. Private loans, however, are not federally regulated. The lenders who offer private loans decide on the rates and features of the loan.
"Federal loans are a very vanilla product," said Ginny D'Angelo, vice president of student loans at Commerce Bank. "Private loans take the umbrella of policies and restrictions off of the loan. Then it becomes a product like any other commercial product."
Gruett said he relies on financial aid counselors for suggestions on banks to use. Financial aid counselors meet with students to help them decide with what bank to get a loan.
"Counselors let me know the banks that they think are best," Gruett said. "I just limit that number to about four or five."
Gruett added that Webster commonly, but not exclusively, uses Wachovia, Citibank and Commerce Bank for federal loans.
It is a common practice for schools to have a preferred lenders list, said D'Angelo. This list is not strictly enforced, but acts as more of a default list for students who are unsure of where to apply for a loan.
"When a student goes in and applies for a loan, sometimes they don't know where to go for a loan, or sometimes they really don't care," D'Angelo said. "Most students just go to a bank on that list."
When students are in need of private or alternative loans, Webster's counselors make suggestions based on their personal experience with the banks.
"We think about what will be best for the student and their situation," Wieck said. "Some loans are easier to get or some loans may have lower fees. It depends on the student and what they need."
Student loans have become a necessity for many students as the cost of higher education in Missouri has increased.
From the 2001-2002 school year to 2005-2006, Webster's non-Conservatory tuition has increased by $3,490.
In 2004, Missouri received an F in affordability in a report by The National Center for Public Policy and Higher Education, a non-partisan group that analyzes national and state policy issues.
As with all Stafford loans, the rates will still be set by the government.
"We partnered with Wachovia, who offered us with a line of credit to offer these loans," said Jon Gruett, director of financial aid. "Any revenue from the program goes back into scholarships or paying down loan fees."
Webster's Financial Aid Office processes more than $130 million in student loans every year. To figure out who will handle the loan, the financial aid department relies on past experience and the features of the loan being offered.
"We point out the options to students," Sarah Wieck, a financial aid counselor at Webster, said. "We look around and see what's best for each student and their situation. We know from past experience who will be best for students."
Financial aid helps students find lenders for federal and private loans. Federal loans follow government regulations on things such as interest rates. Private loans, however, are not federally regulated. The lenders who offer private loans decide on the rates and features of the loan.
"Federal loans are a very vanilla product," said Ginny D'Angelo, vice president of student loans at Commerce Bank. "Private loans take the umbrella of policies and restrictions off of the loan. Then it becomes a product like any other commercial product."
Gruett said he relies on financial aid counselors for suggestions on banks to use. Financial aid counselors meet with students to help them decide with what bank to get a loan.
"Counselors let me know the banks that they think are best," Gruett said. "I just limit that number to about four or five."
Gruett added that Webster commonly, but not exclusively, uses Wachovia, Citibank and Commerce Bank for federal loans.
It is a common practice for schools to have a preferred lenders list, said D'Angelo. This list is not strictly enforced, but acts as more of a default list for students who are unsure of where to apply for a loan.
"When a student goes in and applies for a loan, sometimes they don't know where to go for a loan, or sometimes they really don't care," D'Angelo said. "Most students just go to a bank on that list."
When students are in need of private or alternative loans, Webster's counselors make suggestions based on their personal experience with the banks.
"We think about what will be best for the student and their situation," Wieck said. "Some loans are easier to get or some loans may have lower fees. It depends on the student and what they need."
Student loans have become a necessity for many students as the cost of higher education in Missouri has increased.
From the 2001-2002 school year to 2005-2006, Webster's non-Conservatory tuition has increased by $3,490.
In 2004, Missouri received an F in affordability in a report by The National Center for Public Policy and Higher Education, a non-partisan group that analyzes national and state policy issues.
Be the first to comment on this story