.: When Securing A Student Loan, Going Direct Is The New Reality For Savvy Students And Parents
By:Stacey Moore
Category:Home / Finance / Credit / Loans
The government introduced student lending as a means of paying tuition and other college-related expenses 41 years ago. Since then, students have routinely relied on the financial aid office at their school to make critical decisions regarding their future student loan debt. However, a lack of control over these decisions, compounded by the rising costs of higher education, has led to a national student loan debt dilemma.
Up to 90 percent of students require some kind of financial aid to pay for education. While the average student will leave school with approximately $20,000 of loans to repay, that number skyrockets for those seeking graduate and professional degrees. Today, young college graduates are forgoing or postponing major life decisions--such as marriage, children and real estate purchases--in order to pay down their student loan debt.
Student loan company MyRichUncle launched a campaign earlier this year to encourage greater consumer awareness about the student loan industry--in particular, the areas that directly affect students. "It Matters Now," a core company belief, stresses one important point: The choices made today about student loans could negatively impact a student's future.
Direct-to-Student Lending
With other industries, cutting out the middleman has proven effective in forcing companies to compete for business. Now, the direct-to-consumer concept is gaining momentum in the student loan arena.
There are several advantages to direct-to-student lending, namely:
• The lender list a financial aid office provides could lead students to unwittingly pay a premium for their loans. The best-priced lenders may not be included on these lists, based on a school's preference and other variables.
• What's more, rates and borrower benefits can change at any time and it is unlikely a financial aid office can be kept apprised of the absolute best rates all the time.
• Schools do not spend enough time researching lenders' offerings. Bypassing the financial aid office and going direct allows students to control the loan process and consider all options.
• By comparing lender against lender, you, the consumer, will encourage a more price-competitive market to evolve.
"Shop around. Compare offers. The consumer is the best manager in preventing a future financial pitfall," said Raza Khan, MyRichUncle president and co-founder. "Our customers shop direct and realize a substantial savings on their loans because of it."
Know Your Options: Federal and Private Student Loans
Federal loans include subsidized (when the government pays the interest on a loan while the student is in school) and unsubsidized Stafford Loans and Parent Loans for Undergraduate Study (PLUS). MyRichUncle is the first to introduce price competition on federal loans-cutting the rate on these loans by up to 2 percent. This can ultimately save a student thousands of dollars over the long run.
The fastest-growing segment of financial aid is private student loans, another area where going direct is the best route for students to secure the best rates. MyRichUncle provides loan options that are both competitively priced and innovative, in order to fund the widest demographic of borrowers, including those with little or no credit history.
Article keywords: When Securing A Student Loan, Going Direct Is The New Reality For Savvy Students And Parents
Article Source: http://www.articles32.com
For more information, visit www.MyRichUncle.com.
.: New Loans Articles
1). Tell You More About Intended Payday Loans
Payday loans are intended to tie borrowers over until the next paycheck arrives. The downside is payday loans have steep fees and APR (Annual Percentage Rates) and can lead to bankruptcy and debt.
2). How To Get Your Unsecured Business Loan
If you just had more money, you are sure that your small business can take off to the next level. The assets that you might use for collateral are all tied up - leaving you with none available.
3). Secret of Credit Score Range
Commonly credit score range used by credit bureaus.
4). Guide to Credit Score Online
The secret of free Credit Score.
5). Are There Any Benefits To Owning A No Annual Fee Reward Credit Card?
Are you thinking of applying for a credit card that do not carry any annual fees but hesitant to do so? Did you ever wondered why credit card companies are willing to forgo the revenue from the annual fees? Are there real benefits from owning such a credit card or it is just another marketing ploy used by the credit card companies? Read on to find out the answers to all these questions.
6). Online Pay Day Loans Canada: Cash in 24 Hours
Online pay day loans in Canada provide a quick rescue when you have a financial emergency to cover immediately. Imagine if you are just handed a bill of $500 for your car repair. Your pay day is still weeks away and you are tight in cash already, not too mention if there are outstanding bills to be paid.
7). Everything You Need to Know About Secured Loans
With the rise of house prices, if you need some extra cash to fund a special purchase, taking out a secured loan just may be the right option for you.
.: Top Loans Articles
1). Help! My Friend Wants Me to Cosign A Loan
Many people find it difficult to get a loan if they have bad credit. For them one of the easy ways to get credit is through cosigning a loan. If you have been asked to cosign a loan by your friend or relative, there are several things you need to consider before asking where to sign.
2). No Teletrack Cash Advance – Avoiding Financial Difficulties
Fast and easy cash advance with no teletrack is ideal for you in case of financial emergencies. Companies offering no teletrack cash advance offer short term, low amount loans, lasting between 7 to 21 days – and hence do not verify information using the teletrack system.
3). Let Your Dreams Come True with Bad Credit Secured Personal Loan
Are you not able to fulfill your dreams just because of your bad credit score? Thanks to bad credit secured personal loan, with the help of which you can grab your dreams without any hurdles. Different people have different requirements and it is the occupation of this loan to give a better path to satisfy their necessities.
Bad credit secured personal loan is meant for homeowners who don’t have any problem in putting their property as collateral against the loan amount.
4). Unsecured Personal Loans For Non-Homeowners
Unsecured personal loans are especially fashioned to provide for the financial demands of tenants or non-homeowners. Tenants commonly do not own property to use as collateral. Many lenders are willing to work with individuals who have no personal assets. Interest rates may be a little higher and the loan amount can be limited. This type of loan is considered one of the more flexible loans with no mandatory collateral required, which is why it is known as an unsecured personal loan.
5). Do You Struggle to Get Business Credit without a Personal Guarantee?
Getting business credit can be a dificult thing to do. Lenders do not want to finance your venture if they don't believe you have a stake in the business. However, if you can overcome their doubts, you will be able to get separate credit in your business name.
6). Unconventional Job? You Need An Unconventional Loan!
Many people have dreamed of starting their own business, and it can certainly be satisfying. But what happens when you need a loan? If you’re self-employed, even if you have an excellent credit history, you may find it hard. Even though the banks are more flexible these days, and loaned out £41.2 billion to those working for themselves or with less than perfect credit scores, an amazing nine million people were turned down for a loan last year.
7). How To Do A Credit Card Debt Consolidation
Credit card debt consolidation allows you to pay your current debts in 3-6 years. Under a debt consolidation plan, terms and conditions change. The purpose of debt consolidation is to speed up your paying time and at the same time makes lower monthly bills.