College students have plenty of studying to do for their required classes. But doing some additional homework on student loans is worth more than extra credit-it can result in long-term savings.

No matter what topic a student studies in college, he winds up taking a crash course in financial management. Emerging from under a parent's wing, virtually every student must learn how to budget money and handle a credit card.

The preferred lender problem

Students also need to be savvy about choosing the right lender for a higher education loan, especially in light of the recent student loan scandal. The root of this newsworthy event revolves around the "preferred lender list" that a university provides for its students seeking a loan. These lists, which include student loan lenders recommended by the university, are highly influential to prospective students.

Recently, information has surfaced that student loan companies were providing kickbacks to schools in return for a place on the preferred lending list. The kickbacks ranged from "consulting fees" to financial donations to the school.

Buyer beware

Despite the kickbacks, there are preferred lenders who may have the best loans. The lesson to be learned from the scandal is that any institution on the list should be just one of the many lenders a student should consider.

A student can choose any lender he likes, so it's important to shop around to find the best that the market has to offer. He should compare rates and loan terms, and make his decision based on such factors. And he should find out why a lender made it onto the preferred lending list. While a lender may not be offering a discount, it could provide excellent customer service and take the time to educate students on financial matters.

Benefits upfront or on the back-end?

Loans tend to include two kinds of benefits: Front-end and back-end. For a loan with front-end advantages, the name implies much of what you can expect: low upfront fees and rapid application processing. When advantages come at the loan's conclusion, expect reduced interest rates and excellent customer service.

No matter which benefit program you choose, it's important that your contact and enrollment information be accurate. Be sure to apply well in advance of any deadlines. You'll want to leave some cushion just in case there are any problems with your loan application.

Now that you're familiar with everything from preferred lenders to back-end benefits, you're ready to start your own research project. Seek out lenders and find out what kind of loan programs they offer. Like everything in education, you get back only as much as you put in. If you do your homework, your passing grade will be the best student loan the market can offer.