Borrowers face a menu of similar looking options while selecting a loan plan. However, it is unclear whether they can select the most cost-effective plan. Through a framed laboratory experiment, I found that participants were 78% likely to state a suboptimal preference ordering and 68% likely to select a dominated loan plan. I provide suggestive evidence on the role of attribute substitution in the decision making process, where participants substituted APR and Total Cost attributes for the present discounted cost of a loan plan. Additionally, I provide causal evidence demonstrating how additional information can alter the choice of the substituted attribute. These findings raise important questions about individuals’ comprehension of loan-related attributes and emphasize the need for education programs to build citizens’ financial capability.