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Friday, April 18, 2008

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Deanne Loonin

Yet another distorted view from today’s Boston Globe, once again on the front page. (I keep picking on Boston because I live here, but this distorted coverage is happening everywhere). The April 19 article, titled “College-bound face dilemma” gives us the “news” that not everyone can afford to go to a first choice college. Yet the article does not give a single example of a student who needed a private loan to finance that choice and was turned down. Instead we get speculation that the “uncertainty surrounding the burgeoning student loan crisis” means that students may have to reject $50,000/year choices for slightly cheaper choices. This might be true, but not because of changes in student loans. As I’ve already said (over and over), despite the volatility in the markets, access to federal loans is unchanged. This includes parent PLUS loans, which can be used to finance gaps in financial aid packages. Parents who can’t pass the minimal PLUS loan credit check may have problems, but turning to private loans is not necessarily the best answer for them. As is documented in a recent NCLC report, private student loans are not always what they seem to be, usually worse, especially for those with lower credit scores. (see http://www.studentloanborrowerassistance.org/uploads/File/Report_PrivateLoans.pdf

Today’s Globe article also notes that community colleges might see an up tick in enrollment as students reject pricier schools. Is this such a bad thing? Not necessarily, although an excellent report released this week by the Project on Student Debt shows that many community colleges do not participate in the federal loan programs, hopefully something that can be remedied soon. (see http://projectonstudentdebt.org/pub_view.php?idx=329).

There may be a silver lining to the distorted media coverage if it helps students and parents wake up to the realization that higher education IS a financial decision. And guess what? People with less money have been forced for years to choose schools based on affordability. Is it right that someone has to give up a dream of attending NYU and instead go to UMass Amherst as is reported in this article? Hard to say (and we here in MA think pretty highly of UMass Amherst). Regardless, education dreams have always come at a cost for borrowers with lower incomes. Our current educational system is inequitable and gives greater access to those with more money. We should work to change this, but reform is never going to come by students and families piling on private loan debt.

For a good article on what’s really going on, see http://chronicle.com/daily/2008/04/2533n.htm. As Paul Basken notes in this article, “Compared with the perplexed politicians and the cash-strapped private lenders, students might end up being the ones who experience the least disruption.” Let’s make sure students and their parents know that rather than creating panic just to sell newspapers (or blogs).

Valerie Rodd

What does this mean for Canadian students studying abroad who rely on American Canhelp loans? Canadian banks won't touch Canadian students who study abroad. Our only hope for our daughter studying to become a veterinarian in Australia is relying on Canhelp loans. There is a huge crisis, let me tell you! Canhelp has stopped processing the applications which has left us high and dry. What is our recourse now?

Valerie Rodd

What does this mean for Canadian students studying abroad who rely on American Canhelp loans? Canadian banks won't touch Canadian students who study abroad. Our only hope for our daughter studying to become a veterinarian in Australia is relying on Canhelp loans. There is a huge crisis, let me tell you! Canhelp has stopped processing the applications which has left us high and dry. What is our recourse now?

deepak student loans

These unsecured loans' features will also help you to build a budget and stick to it easily. When credit cards are included in a budget, the complexity increases because you have to foresee many things in order for the budget to be useful. Predicting ones behavior is complicated enough, if you have to predict market conditions and income variations in order to see if you will be able to meet credit card payments that keep changing as a consequence of a variable rate, things can get really complicated.

No Fax Payday Loans

Because of the credit crunch problem, student loans have been affected. Some of the loan companies had stopped the transactions in allowing the students to have loans. This is the very big problem of the students and parents. How can now the students continue their studies if the loan companies did not support them anymore? This is really horrible. The government should do an action regarding this controversy. http://personalmoneystore.com talks about the recent issues in the loan industry particularly the No Fax Payday Loans.


Student Loans

Hi Very good blog - thanks for the info David

infomercial producer

Yeah, you're right. There are serious problems regarding with the student loan industry.

-Daniel

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