College Student Loans Help
Sydney, Sean Longford today launched the college student loans advice website http://www.collegestudentloanshelp.com. In the wake of the recent credit crunch, the US government is now allowing undergraduate students to borrow more and make significant savings on their government student loans via interest rate decreases. This sounds fantastic on the surface, but when one digs a little deeper there are limitations and most certainly things to consider before diving into a student loan.
The changes made are in relation to Stafford loans, as Kim Clark, contributor to US News states: “This fall, Staffords will charge a maximum rate of 6.8 percent, plus 2 percent in upfront fees (true maximum APR: 7.4 percent). Thanks to emergency legislation passed in the spring, entering freshmen will be able to borrow up to $5,500, sophomores $6,500, and upperclassmen $7,500 through the Stafford program.” These savings are intended to be aimed at low-income students, who lack the ability to be able to fund their education. Furthermore one of the US largest student loan providers Salli Mae has just announced a 20 billion dollar funding boost for new loans in this academic year.
Wealthier students are also in luck. In reaction to the introduced legislation various new student loan companies are offering ‘alternative’
Despite these funding increases and rate cutes, at the end of the day all lenders are going to be more careful in issuing loans. The sub prime mortgage crisis has rocked the foundations of many lending companies and this has sent shockwaves and doubt throughout student loan lenders, as Ashley M. Rueff and Russ Wiles, contributors to The Arizona Republic state: “Yet some borrowers, especially those attending community colleges and technical institutes, will have trouble obtaining money, and others will face higher interest rates or other unfavorable terms, especially on private loans”. The bottom line is that loan issuers are going to be far more selective that they may have been in previous years.
A further example of this is the slightly riskier option for low-income students to co-sign the loan with their parent’s mortgage. Rates will depend on the parents credit and mortgage history. Basically the stronger the credit score, the more competitive the rate offered will be.
For those students looking to secure a student loan right now, it will pay off to shop locally. State run agencies and non-for-profits seem to offer the best rates. 2 useful student loan research tools include EFC.org and SimpleTuition.
The student loan advice website www.collegestudentloanshelp.com provides visitors with unbiased information and resources on all aspects of securing and managing a student loan. Specifically the site focuses on student loans consolidation, refinancing, managing repayments and bad credit options.
To learn more, please visit:
http://www.collegestudentloanshelp.com
Photo:
http://www.prlog.org/
