The student loan crisis has hit like outrageous gas prices at the pump. In this article CollegeBasics explores this problem and suggests what parents and students should do if they need help getting through the confusing education loan process and in making the best possible choice for them.
In her article in the Boston Globe, Tracy Jan catalogued the problems that are facing the college loan industry. On April 7 The Education Resources Institute, a non-profit that guarantees student loans, declared Bankruptcy. Bank of America Corp., the third largest lender of student loans in the country, has announced it will not provide private loans any longer. Citigroup, Inc. no longer offers federal consolidation loans, which means parents and/or students, are not able to make several loans more manageable with one payment though this financial institution. How many other financial institutions will follow suit? And, over 50 firms are no longer writing federal or private loans since December 2007.
Many of you who have visited campuses and gotten a good feel for a college as a first-choice school and many of you who know one college is a better academic fit than another will not be able to afford to go where you want. Unfortunately, data shows students who do not go to their first-choice school are less likely to graduate. If you’ve received a good financial aid package you’re golden, but most colleges are offering packages with more loans than grants. You and your parents have to make the practical decision and choose the college that means less debt in the future.
Of course, you should not panic yet. There are loans out there. It’s just getting harder and more complicated to get them. More students are applying for loans now, and with a larger pool of applicants, there is more competition at a time when there are fewer lenders. Without stellar credit, it is harder to get available loans. Also, rules for applying and qualifying for loans are changing, and loaners are charging higher interests rates.
College Basics has done a little research and strongly recommends that parents and students choose to get some help navigating student loan programs to get the best results! We suggest you look at SimpleTuition, an online resource that gives guidance to people going through this complex process. SimpleTuition offers, tools, resources, and lists of possibilities so that you know all the possible opportunities and can make the best choice.
Check out SimpleTuition. Let SimpleTuition find the right student loan for you.Times are tough, and to make it possible to attend the best college for you, make sure you take advantage of all the resources and all the help available to you.