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.
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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
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