There has been much speculation that today’s Massachusetts Senate race is a referendum on health care. That may be an understatement. My guess is that this senate race could have even larger repercussions.During an appearance on “Fox News Sunday,” this past week, Senate Minority Leader Mitch McConnell put it well when he said that President Obama’s plan to bring about “change” to America wasn’t merely limited to health care. As McConnell noted,
“This arrogant attempt to have the government take over one-sixth of the economy on the heels of running banks, insurance companies, car companies, taking over the student loan business, doubling the national debt in five, tripling in 10. You’ve got … sort of widespread public revulsion.”
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Thursday, April 15, 2010
Sunday, March 28, 2010
Should You Tap Credit Unions for College Loans?
Thanks to the ongoing credit crunch, nabbing a student loan from a bank is increasingly difficult. Since July 2007, 50 banks have suspended private student loans and only about a dozen still underwrite them, according to FinAid.org, which tracks college financing.
One alternative: your local credit union. More commonly associated with serving groups of teachers or employees, credit unions are stepping into the student loan business, hoping to pick up the slack – and profits – that banks are leaving behind. The unions are poised to do so because they never got into mortgages the way traditional banks did, and are now flush with cash. It is “a perfect way for them to get fairly significant return on an asset class,” says Jim Briggs, a financial aid advisor at WiseChoice, which provides students with personalized online college counseling.
This month, at least three credit unions are slated to start offering private student loans, including Southern Lakes Credit Union in Wisconsin, West Branch Valley Federal Credit Union and Merck, Sharp & Dohme Federal Credit Union, which are both in Pennsylvania. In November, New York State’s Higher Education Services Corporation, which offers private education loans to students, added the credit union SEFCU to its roster of choices. (It joined Discover Student Loans and PNC Bank.) The following month, it also added Fynanz, a company that originates, services and underwrites private student loans for credit unions. In total, since May 2008 at least 20 credit unions have entered the marketplace through Fynanz's network and at least 82 have entered through Credit Union Student Choice, which processes credit unions’ loans and provides regulatory compliance.
But beware of pitfalls. For the most part, interest rates on private student loans offered by credit unions are higher than subsidized federal-student-loan rates. What’s more, borrowers’ credit scores often impact the loan’s terms and there’s little leniency with repayment. In some cases, just to apply for the loan, you have to show a letter of acceptance from the college or university, so the timing isn’t always ideal.
Still interested? Here are five issues to consider before signing up for a credit union’s private student loan.
Source
One alternative: your local credit union. More commonly associated with serving groups of teachers or employees, credit unions are stepping into the student loan business, hoping to pick up the slack – and profits – that banks are leaving behind. The unions are poised to do so because they never got into mortgages the way traditional banks did, and are now flush with cash. It is “a perfect way for them to get fairly significant return on an asset class,” says Jim Briggs, a financial aid advisor at WiseChoice, which provides students with personalized online college counseling.
This month, at least three credit unions are slated to start offering private student loans, including Southern Lakes Credit Union in Wisconsin, West Branch Valley Federal Credit Union and Merck, Sharp & Dohme Federal Credit Union, which are both in Pennsylvania. In November, New York State’s Higher Education Services Corporation, which offers private education loans to students, added the credit union SEFCU to its roster of choices. (It joined Discover Student Loans and PNC Bank.) The following month, it also added Fynanz, a company that originates, services and underwrites private student loans for credit unions. In total, since May 2008 at least 20 credit unions have entered the marketplace through Fynanz's network and at least 82 have entered through Credit Union Student Choice, which processes credit unions’ loans and provides regulatory compliance.
But beware of pitfalls. For the most part, interest rates on private student loans offered by credit unions are higher than subsidized federal-student-loan rates. What’s more, borrowers’ credit scores often impact the loan’s terms and there’s little leniency with repayment. In some cases, just to apply for the loan, you have to show a letter of acceptance from the college or university, so the timing isn’t always ideal.
Still interested? Here are five issues to consider before signing up for a credit union’s private student loan.
Source
Monday, March 15, 2010
Student Loan Consolidation is the best option to reduce debt
As schools opened for new semester, College students are burdened with more student debt and become cumbersome to manage all loans at one time.
The best option for students to ease on the multiple students is to consolidate students loans. Consolidation of student loans can be either be done with Government lender and private lender. All loans will be rolled in to one payment and one interest will be given to deal with instead of multiple payments and loan if loan consolidation option is taken.
Also when consolidating the loan, it is vital to hunt for lower interest rate and ultimately help to keep lower cost of you debt. There are countless institutions who frequently target consumers like you for loan debt consolidation, but be careful, no all institution are reputable that offer low interest rate. You don’t need to hang on to same interest rate or some fashion in higher interest even after consolidating your loan. Research is important to look for institution and big financial institutions should be preferred.
Consolidating your students loan will help you to make payments affordably and it also allow you to better budget your income and most importantly get yourself out of debt if you look for best consolidation option with lower rates and affordable payment plan.
Source
The best option for students to ease on the multiple students is to consolidate students loans. Consolidation of student loans can be either be done with Government lender and private lender. All loans will be rolled in to one payment and one interest will be given to deal with instead of multiple payments and loan if loan consolidation option is taken.
Also when consolidating the loan, it is vital to hunt for lower interest rate and ultimately help to keep lower cost of you debt. There are countless institutions who frequently target consumers like you for loan debt consolidation, but be careful, no all institution are reputable that offer low interest rate. You don’t need to hang on to same interest rate or some fashion in higher interest even after consolidating your loan. Research is important to look for institution and big financial institutions should be preferred.
Consolidating your students loan will help you to make payments affordably and it also allow you to better budget your income and most importantly get yourself out of debt if you look for best consolidation option with lower rates and affordable payment plan.
Source
Sunday, February 28, 2010
Get Out Of Debt By Consolidating Student Loans; Lower Interest On Student Loan Debt
Any college graduate with student loan debt and who has a substantial amount of debt, or even student debt that is simply cumbersome, can ease their burden and make strides in erasing their debt by consolidating student loans.
Multiple student loans are going to bring multiple interest payments and as time passes these interest payments are going to build upon each other and over the life of the repayment schedule of the student loan, will bring more payments and cost than there needs to be.
If you consolidate your student loans, either with a government lender or private lender, you are going to roll all the debt into one payment and be given one interest rate, so this will make payments more affordable and manageable, which will aid you in lowering your debt and more easily dig your way out of debt in a more timely manner.
Also, when consolidating student loan debt, finding a low interest rate is going to be vital. If you consolidate your student loan debt but your interest rate is at a level where you have gained no affordability then it will take a longer period to pay off that debt, which, again, can cost you more money in the long run and keep you in debt longer.
There are countless institutions that advertise student loan debt consolidation, but not all are reputable nor will they offer you a low interest rate. Larger, more established financial institutions or student loan lenders are more than likely going to give the best offer.
Consolidating your student debt can make payments more affordable, allow you to better budget your income, save money, and more quickly get yourself out of debt if you look for the best consolidation option for and seek out a lower rate with a more affordable payment plan.
Source
Multiple student loans are going to bring multiple interest payments and as time passes these interest payments are going to build upon each other and over the life of the repayment schedule of the student loan, will bring more payments and cost than there needs to be.
If you consolidate your student loans, either with a government lender or private lender, you are going to roll all the debt into one payment and be given one interest rate, so this will make payments more affordable and manageable, which will aid you in lowering your debt and more easily dig your way out of debt in a more timely manner.
Also, when consolidating student loan debt, finding a low interest rate is going to be vital. If you consolidate your student loan debt but your interest rate is at a level where you have gained no affordability then it will take a longer period to pay off that debt, which, again, can cost you more money in the long run and keep you in debt longer.
There are countless institutions that advertise student loan debt consolidation, but not all are reputable nor will they offer you a low interest rate. Larger, more established financial institutions or student loan lenders are more than likely going to give the best offer.
Consolidating your student debt can make payments more affordable, allow you to better budget your income, save money, and more quickly get yourself out of debt if you look for the best consolidation option for and seek out a lower rate with a more affordable payment plan.
Source
Monday, February 15, 2010
Clemson joining federal student-loan plan
CLEMSON - Clemson University will change this fall from a bank-based to a federal student loan program, eliminating concern over student loan availability and pending changes on Capitol Hill.
The decision follows a recent University of South Carolina choice to convert to the federal Department of Education's Direct Loan program, and it ensures that federal loans will be available to qualifying students and parents.
About 20,000 students at the state's two largest universities have federal education loans totaling $240 million per year, according to Clemson and USC financial aid administrators.
The change will simplify the loan process for students who will no longer have to seek out and compare lenders, said Keith Reeves, associate director of financial aid at Clemson. The loans are basically the same and eligibility is the same, Reeves said.
Federal loans including Stafford, Parent PLUS and Graduate PLUS loans will come directly from the Department of Education through the school's financial aid office. "It removes all concern about the funds being available," Reeves said.
The Direct Loan program would be mandated on July 1 if federal legislation approved by the U.S. House passes the U.S. Senate.
Rather than waiting on the outcome, Clemson will start converting systems now for a smooth transition, Reeves said.
"Even if (the federal legislation) doesn't pass, there is a concern that there may be a lack of funds available by the lending community to make all the loans that may be needed, and that could put students in jeopardy," Reeves said.
"Recent volatility in the credit markets and proposed legislative changes to student loan programs have caused a high level of instability in the private-based student loan market," Reeves said.
Both universities will launch campaigns in the next few weeks to be sure that continuing students with federal loans know about changes they will need to make to avoid delays in the fall.
Continuing students need to sign new promissory notes -which can be done electronically - and make sure their school financial aid office knows they want to borrow.
While this is a significant change, there is no need for alarm, said Ed Miller, USC director of student financial aid and scholarships.
"Part of the reason for the change is to avoid uncertainty and to be able to continue to give money to the students who have borrowed in the past and to assure new students that funding will be available," Miller said.
Students who will graduate with a combination of bank-based and direct federal student loans will be able to consolidate their loans, if they desire, after they finish school and before they begin payments. Help will be available from the financial aid office, Reeves said.
Source
The decision follows a recent University of South Carolina choice to convert to the federal Department of Education's Direct Loan program, and it ensures that federal loans will be available to qualifying students and parents.
About 20,000 students at the state's two largest universities have federal education loans totaling $240 million per year, according to Clemson and USC financial aid administrators.
The change will simplify the loan process for students who will no longer have to seek out and compare lenders, said Keith Reeves, associate director of financial aid at Clemson. The loans are basically the same and eligibility is the same, Reeves said.
Federal loans including Stafford, Parent PLUS and Graduate PLUS loans will come directly from the Department of Education through the school's financial aid office. "It removes all concern about the funds being available," Reeves said.
The Direct Loan program would be mandated on July 1 if federal legislation approved by the U.S. House passes the U.S. Senate.
Rather than waiting on the outcome, Clemson will start converting systems now for a smooth transition, Reeves said.
"Even if (the federal legislation) doesn't pass, there is a concern that there may be a lack of funds available by the lending community to make all the loans that may be needed, and that could put students in jeopardy," Reeves said.
"Recent volatility in the credit markets and proposed legislative changes to student loan programs have caused a high level of instability in the private-based student loan market," Reeves said.
Both universities will launch campaigns in the next few weeks to be sure that continuing students with federal loans know about changes they will need to make to avoid delays in the fall.
Continuing students need to sign new promissory notes -which can be done electronically - and make sure their school financial aid office knows they want to borrow.
While this is a significant change, there is no need for alarm, said Ed Miller, USC director of student financial aid and scholarships.
"Part of the reason for the change is to avoid uncertainty and to be able to continue to give money to the students who have borrowed in the past and to assure new students that funding will be available," Miller said.
Students who will graduate with a combination of bank-based and direct federal student loans will be able to consolidate their loans, if they desire, after they finish school and before they begin payments. Help will be available from the financial aid office, Reeves said.
Source
Monday, December 28, 2009
Student loans: Not another D.C.-run plan
The federal government has its hands in far too many pots these days. It has taken over U.S. automakers, sectors of the financial industry, and now, along with health care, the Obama administration would like to take over student loans. This would create a huge problem for Utah, where our student loan system actually works.
Utah's state-organized student loan program creates custom repayment plans resulting in the lowest default rate in the country. Nationalizing student loans would undo the successful work of Utah, cut state jobs and increase default rates by eliminating the one-on-one service guiding students through the complex process.
Utah has the highest student loan repayment rate in the nation. Our colleges and universities are providing students good value for their investments, and the Utah Higher Education Assistance Authority has designed a loan repayment strategy that works for everyone. A September U.S. Department of Education report indicates only 2.1 percent of UHEAA borrowers defaulted last year, compared with a national average of 6.7 percent. But the Obama administration wants to make a federal case of it -- to literally take it apart and put it back together in Washington. The administration is calling for the U.S. DOE to become the originator of student loans, beginning next July. This could shut down UHEAA, which has successfully administered Utah education loans for more than 30 years.
Last year, UHEAA made nearly half a billion dollars in loans to students at Utah's major colleges and universities. About 170,000 Utah borrowers are well-served now, and millions of loans have been processed over the years. All of this goes away under the Democrats' plan for student loans, which will only expand D.C. bureaucracy and mismanagement.
A government-run student loan program would drive out the competition of private lenders by setting artificially low rates, yielding a complete takeover of the industry.
Obama's Direct Student Loan program would expand the federal balance sheet by $1 trillion over the next decade and taxpayers will fork over approximately $100 billion per year to lend to students. The Congressional Budget Office even admitted that the accounting on the plan's potential savings is skewed because it doesn't consider the risk from increased default rates.
I'm working with my Republican colleagues to bring some common sense to this discussion. There are several options. One is stopping Obama's student loan program entirely. The more people understand about this trillion-dollar bill and its implications, the better chance we have of keeping student loans local. We are also queuing up more modest modifications to preserve as much local autonomy as possible.
Anyone who has ever applied for a student loan knows that it's a formidable undertaking that requires a lot more assistance than what's available on a D.C. Web site. Students and parents will be hard-pressed to find someone to coach them through the repayment process if the Obama plan becomes law.
Washington should refrain from engaging in another government-run program that would only cripple the strong system developed in Utah rather than allowing our state to serve as an example for other states to follow as it does now.
Source
Utah's state-organized student loan program creates custom repayment plans resulting in the lowest default rate in the country. Nationalizing student loans would undo the successful work of Utah, cut state jobs and increase default rates by eliminating the one-on-one service guiding students through the complex process.
Utah has the highest student loan repayment rate in the nation. Our colleges and universities are providing students good value for their investments, and the Utah Higher Education Assistance Authority has designed a loan repayment strategy that works for everyone. A September U.S. Department of Education report indicates only 2.1 percent of UHEAA borrowers defaulted last year, compared with a national average of 6.7 percent. But the Obama administration wants to make a federal case of it -- to literally take it apart and put it back together in Washington. The administration is calling for the U.S. DOE to become the originator of student loans, beginning next July. This could shut down UHEAA, which has successfully administered Utah education loans for more than 30 years.
Last year, UHEAA made nearly half a billion dollars in loans to students at Utah's major colleges and universities. About 170,000 Utah borrowers are well-served now, and millions of loans have been processed over the years. All of this goes away under the Democrats' plan for student loans, which will only expand D.C. bureaucracy and mismanagement.
A government-run student loan program would drive out the competition of private lenders by setting artificially low rates, yielding a complete takeover of the industry.
Obama's Direct Student Loan program would expand the federal balance sheet by $1 trillion over the next decade and taxpayers will fork over approximately $100 billion per year to lend to students. The Congressional Budget Office even admitted that the accounting on the plan's potential savings is skewed because it doesn't consider the risk from increased default rates.
I'm working with my Republican colleagues to bring some common sense to this discussion. There are several options. One is stopping Obama's student loan program entirely. The more people understand about this trillion-dollar bill and its implications, the better chance we have of keeping student loans local. We are also queuing up more modest modifications to preserve as much local autonomy as possible.
Anyone who has ever applied for a student loan knows that it's a formidable undertaking that requires a lot more assistance than what's available on a D.C. Web site. Students and parents will be hard-pressed to find someone to coach them through the repayment process if the Obama plan becomes law.
Washington should refrain from engaging in another government-run program that would only cripple the strong system developed in Utah rather than allowing our state to serve as an example for other states to follow as it does now.
Source
Tuesday, December 15, 2009
Student loan programs to switch lenders beginning Fall 2010
SFA Financial Aid will be switching lenders for student loan programs. This scheduled change will affect more than 7,000 students utilizing the Federal Stafford Loans (subsidized and unsubsidized) as well as the Federal Parent Plus Loan.
Currently, loan funding comes from 100+ financial institutions that participate in the federal loan program; with this change, funding will now be allocated through one direct lending source, the U.S. Treasury. All students who plan on receiving financial aid beginning with the Fall 2010 Semester must complete a new master promissory note regardless of previously completed promissory notes. This includes any loans granted to SFA parents as well.
This change will not affect interest rates, as they are set in the same manner and will be appointed accordingly.
"Our biggest concern is educating students about this impending change so that they know what to do and when to do it," Rachele Nixon, assistant director of financial aid, said. The financial aid department plans on rolling out a campaign to educate students on the changes beginning in December with a heavy emphasis in the Spring 2010 Semester after the transition has been completed and the process nailed down.
An important issue for upper level students receiving financial aid to consider is that this change will have a greater affect on their loans.
"Our long-term goals for students is that they understand when they graduate they will then carry two loans, (one) from the previous system and (one from) the new system. At (that) point they may wish to consider a consolidation loan upon graduation to alleviate the burden of carrying multiple loans," Valerie Harrell, assistant director of financial aid, said.
Student loans for the 2008 SFA school year amounted to $68 million, further indicating the scope of this change for students. This transition to direct lending through the U.S. Treasury is being instated in multiple higher education institutions, and the numbers are expected to grow. Over the past two years the financial aid program has begun losing participating lenders due to fundamental issues concerning new regulations that are tightening up the lending process.
While SFA is not legally bound to make this switch, current legislation indicates that it may very well become a mandate in the future.
Source
Currently, loan funding comes from 100+ financial institutions that participate in the federal loan program; with this change, funding will now be allocated through one direct lending source, the U.S. Treasury. All students who plan on receiving financial aid beginning with the Fall 2010 Semester must complete a new master promissory note regardless of previously completed promissory notes. This includes any loans granted to SFA parents as well.
This change will not affect interest rates, as they are set in the same manner and will be appointed accordingly.
"Our biggest concern is educating students about this impending change so that they know what to do and when to do it," Rachele Nixon, assistant director of financial aid, said. The financial aid department plans on rolling out a campaign to educate students on the changes beginning in December with a heavy emphasis in the Spring 2010 Semester after the transition has been completed and the process nailed down.
An important issue for upper level students receiving financial aid to consider is that this change will have a greater affect on their loans.
"Our long-term goals for students is that they understand when they graduate they will then carry two loans, (one) from the previous system and (one from) the new system. At (that) point they may wish to consider a consolidation loan upon graduation to alleviate the burden of carrying multiple loans," Valerie Harrell, assistant director of financial aid, said.
Student loans for the 2008 SFA school year amounted to $68 million, further indicating the scope of this change for students. This transition to direct lending through the U.S. Treasury is being instated in multiple higher education institutions, and the numbers are expected to grow. Over the past two years the financial aid program has begun losing participating lenders due to fundamental issues concerning new regulations that are tightening up the lending process.
While SFA is not legally bound to make this switch, current legislation indicates that it may very well become a mandate in the future.
Source
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