PRIVATE STUDENT LOANS

Major lender Wells Fargo announced this week that it would be offering fixed-rate private student loans. This new loan offer is unique since unlike those offered by the federal government, most student loans from private lenders do not come with fixed rates,

Bank Tries to Compete in Private Sector

Sallie Mae announced on Monday that it has dropped its rates on private student loans in order to become more competitive. The company was once an approved lender of federal student loans, but now has to compete in the private market thanks to changes to the student lending process.

Lender Lowers Interest Rates

A military student loan deferment program offered by JPMorgan Chase was recently reinstated after NBC News questioned the program’s elimination. The family that contacted NBC may have helped hundreds have their deferments reinstated while on active duty after the program ended two months ago.

Chase Pressured into Reinstating Deferment Program

If you are in school, or if you have kids attending college, you know that every year the expenses associated with a higher education rises. Paying for college is increasingly difficult as available scholarships shrink in number. Additionally, federal student aid does not always cover all the costs of going to school. There are private student loans, but sometimes those are not practical (or attainable) in an individual’s situation. If you are experiencing a “funding gap” with your educational financing, you might be able to close with the help of P2P lending.

You probably already know that peer-to-peer (P2P) lending offers various opportunities for those wishing to consolidate credit card debt. P2P lending also helps businesses find financing. Business microloans are becoming increasingly popular as start-ups find it difficult to get more traditional financing, and there is a very real possibility that students might find P2P lending helpful for closing a college funding gap.

The private, nonprofit colleges found in California and 11 other states have launched a new web tool designed to help students find private student loans to pay for school. Now that lenders are offering fewer private loans than ever, students need assistance shopping for financial aid through banks and credit unions, and the site intends to help.

The Student Loan Marketplace

A new report from Wall Street Journal has revealed that many family members have to pay their deceased loved-one’s private student loan debt years after death, which is usually not a requirement for federal student loans.

According to the report, individuals who have co-signed a student loan under Sallie Mae, Citibank or Wells Fargo and have had the primary borrower pass away have often been on the hook for the remaining debt. Further, while Sallie Mae has recently introduced forgiveness for death with its Smart Option Student Loan, others note that their policies fall in line with the industry’s standard (Wall Street Journal).

If you’re looking to help your children bypass the entire student loan process when they reach college, then lender Sallie Mae is offering a solution.

The Upromise college account is one of the best savings accounts available for helping parents of students from grades kindergarten through the college years to save for college. It works by having account holders shopping online among 750 retailers through Upromise.com. When you do, you can earn 1 to 25 percent of the purchase price in your free Upromise savings account while also taking advantage of hundreds of online coupons and free shipping offers (Market Watch).

There’s been a lot of talk about the financial reform bill and how it will affect Wall Street, mortgage loans and credit cards, but not a lot has been said about how it will affect private student loans.

According to the latest version of the bill, a new watchdog agency called the Consumer Financial Protection Bureau (CFPB) would oversee financial products, including private student loans.

If you’re looking to buy a new home, it looks like you’re in luck as almost 75 percent of homes around the country are considered affordable. For those looking for student loans, Wells Fargo and other banks are offering enticing private student loan options and if you need a tax break, why not hire your child?

NAHB Says Almost 75 Percent of Homes are Affordable

On March 30, President Barack Obama approved of  student loan reform that would change the way loans are distributed to students from this point forward. Because so many changes have come from this new reform, which was signed into law with the Health Care and Reconciliation Act, it’s good for students to take a look inside to see what to expect as it takes effect.

Government Is Now Top Dog