College = Studies = Loans
By – Anshu Dixit
We all know that education in very expansive, especially if you are in private college. There are different ways of getting money for college. Such as, federal grant, work-study, Stafford loan, alternative loan, scholarships, and many more. Alternative loans are the most expensive way of getting money. It affects your credit scores as well. Since lenders quote higher interest rates to applicants with lower scores, some students could end up paying thousands of dollars more in interest over the life of their loans. It may vary if you have a reliable cosigner. This is very hard to find. In addition to the high interest, there is so much paper work to do with these private loans. It is all because of the credit scores and the higher interest rates.
In this recession, the number of people who are not steady with their mortgage payments, car payment have increased. College students have added their name in these people by not paying their student loan payments because there are not so many jobs out there now. This has become a big issue now a day. President Obama has his concern towards the education. President Obama plan calls for the U.S. Department of Education to move from its current 20% share of the student-loan origination market to 80% on July 1, 2010, when private lenders will be barred from making government-guaranteed loans. But would not it be better to avoid taking private loans and try to get scholarships, and other non-returnable grants first before approving for any private loan.
Sources:-
http://online.wsj.com/article/SB10001424052970203440104574405154157021052.html
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