Despite the difficult times in the student loan industry, financial aid administrators are working tirelessly to get the funds that their students need to attend college in the fall. In a recent poll conducted by NASFAA, a total of 90 percent of student financial aid administrators have stated that they are “concerned” about the student loan crunch, and for good reason. To date, according to Finaid.org, a total of 119 student loan lenders have opted out of the market or have taken a temporary leave.
Many lending institutions who offer federal and private loans have notified colleges and universities that they will no longer offer loans to their students. A high percentage of schools that are being told that their students will not be receiving loans are those primarily attended by low and moderate income students attend. This process needs to change. Every student deserves the opportunity to better their livelihood and should have the right to an education.
The good news is that the landscape appears to be changing. As of July 1st, subsidized Stafford Loans carry an interest rate of 6.0 percent, down from 6.8 percent previously. This is good news for students who are trying to cope with increasing prices and who need to borrow now to invest in their future. The government has stepped in to help students who are seeking federal student loans, which is always the best bet for students who need to borrow money for their degree.
There is an array of different techniques that financial aid administrators are employing; yet, only 25 percent have a backup plan to handle federal or private loan “disruptions.” Additionally, 20 percent aim to have a backup plan before fall 2008 to ensure the best options for their students. Students can do their part to ensure that they are receiving the best rates by taking initiative. Websites such as simpletuition.com and finaid.org can provide students with the ability to compare rates and borrower benefits.
However, while the terms of the federal program have improved significantly due to recent legislation, for many students, this is not enough. For those students seeking financing over and above what the federal program is offering, you may want to check out the Fynanz No-Cosigner Openloan program. To qualify, you must be a verifiable junior or senior and attend on of the schools on our approved list (please see our website). While this program may not be right for everyone, Fynanz is trying to make it easier to fulfill your educational loan needs while still keeping things as affordable as possible.
No comments:
Post a Comment