Federally controlled student borrowing may no longer represent the best available option for many, particularly if they are unable to manage the interest repayment increase.
Atlanta, GA (PRWEB) August 20, 2012
To the chagrin of many indebted students, the US government announced that its Stafford Loans will now be charged at an interest rate 50% larger than last year for all new borrowers from July 1st 2012. The new 6.8% APR will add an extra $5,000 in interest repayments to the average student debt of $24,000, according to figures by MSNBC.
Furthermore, the picture is even bleaker for the 25% of students who are in debt of six figures. Glenn Harlan Reynolds, Professor of Law at University of Tennessee and expert author on student economics, reports that some of his cohort will graduate owing close to the $400,000 mark. The increase in Stafford Loans’ cost will hit these students the hardest and is a stark warning of the struggle to come.
Federally controlled student borrowing may no longer represent the best available option for many, particularly if they are unable to manage the interest repayment increase. Banks do not view students with bad credit as attractive lending prospects, leaving precious few options.
PersonalLoansForBadCredit announces its new student loan comparison service, bringing together a range of credit products from private lenders that may be more competitive and cheaper than the other options open to them.
A spokesperson for PersonalLoansForBadCredit.net made the announcement with reference to the current state of national student finances.
“In President Obama’s State of the Union address, it was acknowledged that college costs are rising faster than wages. Indeed, president Obama addressed an audience of students recently and admitted that he and his wife only completed their last student repayment 8 years ago. If this is the situation for our own President, one can imagine how dire it is for the average college attendee.”
The spokesperson continued, “With issues of debt, bad credit and lack of access to borrowing, many students are also battling to keep their heads above water. Most have parents unable to assist because of their own financial hardship. Who is looking out for the interests of these scholars? The answer used to be the government, but Stafford Loans are now more expensive to repay than many other private options, including the many available for comparison through our free student loans aggregator platform. Our partnered range of reputable lenders specialize in bad credit student loans, free from credit scoring. We encourage students to visit the website and see if they can be better served by those lenders instead.”
The service compares quotes from a network of loan companies offering competitively rated personal loans, short-term cash solutions and credit for students.
To learn more and complete a short no-obligation application form with instant results and approval as a possibility, visit: http://www.personalloansforbadcredit.net.