Tag Archives: Student loan debt

The Benefits of Having Private Student Loans

Student Loan Benefits

Tuition fees and other academic expenses can be a problem not only for parents but for students as well. With the currently dwindling economy, it is hard to determine if it is still possible to attain quality education for free. Thus, it is important to exhaust every possible avenue available in order to ensure that one will have the chance for a brighter future through good education.
One of the common lifeline’s of financially challenged families is student loans. Whether it is a federal or private student loan, students avail of these opportunities in order to continue their studies. Although federal student loans offer lower rates, they usually set a limit to the amount being borrowed, and most of the times, this amount is not sufficient in covering a student’s educational expenses.
Thus, a private student loan is a good alternative, it not a supplement to the federal student loan that students avail of. Although this type of loan mostly depends on one’s credit ratings, it is far more flexible as compared to a federal loan. So the question arises: what are the benefits of private student loans?
First, private student loans are not that strict when it comes to their requirements. Almost everyone can apply for a loan, and only minimum requirements like unofficial transcript of records or letter of acceptance from the school are needed in order for your loan to be processed. Second, private student loan companies offer better customer service assistance. They make sure that you are well-taken care of, and that they are able to answer your every concern. Lastly, with private student loans, you can easily consolidate your other private student loans into one manageable account, making it easier for you to pay off your past and existing loans.
When choosing for a private loan company, make sure that you check out all of your options by comparing their rates, their payment terms and their reputation when it comes to their services. Ask around, ask as many questions as you can when it comes to hidden fees, interest rates, and pre-cancellation penalties. It is best to know everything before applying for a loan.
Earning a degree may be hard, more so if you are financially challenged, but it is good to know that there are companies who are willing to lend a hand into ensuring that you get that degree.

The Student Loan Debt Bomb Bill: What You Should Know

Concerns about the continuously ballooning percentage of unpaid student loans have prompted several lawmakers to pen a bill that would help lessen the number of students who have flunked out from paying their loans. The initially idealistic plan of letting students borrow money to sustain their education, then pay later once they are capable enough to earn has turned into something of a major economic concern.
Although there has been several restructuring that have been done with the payment and interest scheme, but it seems like it has been tainted with the current economic crisis that has affected not only the United States but some of the power countries as well. Thus, a bill called The Student Loan Debt Bomb Bill was created. Also known as The Know Before You Owe Act, this bill aims to:
  •  Impose schools to educate their students and their parents about the available federal student aids that they can avail, before resorting to applying to private student loans.
  •  It also requires schools to be stricter when it comes to confirming vital information related to private student loans.
  •  More awareness when it comes to the different terms and conditions both of federal and private student loans
  •  Their awareness about their awareness to reject or cancel a private student loan under the legal laws.
Apart from these main points, students and lenders are also required to meet several requirements like double-checking the current status and the amount needed by the student from the school, a quarterly update to borrowers about their payables, and a report a certain student loans standing to the Consumer Financial Protection Bureau. This is to ensure that both parties are doing their responsibilities with each other.
This is a good bill, since it both protects the students and private student loan providers from unwanted situations like unpaid loans. Students are more aware of their benefits, and may very well exhaust all available resources offered by the government before turning to private student loan companies. If they do, they will be assisted by their schools in getting a loan that would be easier for them to pay. Private student loan providers, on the other hand, can partner with schools in getting borrowers who are good payers and are capable of paying what they borrow.
This bill is designed to help both the borrower and the lender, and let us hope that it will also help the economy put off another debt bomb in the form of student loans.