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BillSavings.com BlogThe New Student Loan LandscapeHow To Get A Student Loan NowPosted By Frank
BillSavings.com Brief:
Student loans are struggling in this age of tight credit, but students will still need funds to complete school.
The short answer is maybe, but don't expect it to be easy. Federal student loan lenders are struggling to survive, and the U.S. Department of Education recently pointed to the Federal Family Education Loan Program as an ineffective and inefficient system. This isn't all that surprising given the rising default rate, which now stands at 7.3 percent, but the program, which has been around since the 1960s, has been the primary source of federal student loans for would-be college students. Change, as you might expect, is on the way. President Obama recently proposed to cut out the FFEL program entirely. Instead, it would be replaced by the government's Direct Loan Program, which would allow families and students to borrow directly from the government. Universities across the country are scrambling to come up with their own financing options that will allow them to keep enrollment up as well as keep students in the class room. If you're in the market for a loan, however, keep these points in mind. Also note that traditional thinking, such as not having to pay your loans back while you're still in school, may no longer apply. Sallie Mae recently adjusted their practices so that students will make interest payments while still attending school. As if you didn't have enough to worry about. Category: Mortgage & Loans 4/1/2009
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