New York, NY (PRWEB) October 26, 2013
On October 16, 2013, the Bradenton Herald published an article entitled “Student loan borrowers complain of repayment snags” that brings to light problems that many with private student loans are experiencing as they pay off the loan. In response, FinanceAccleration.com advises prospective students to choose Federal over private student loans to finance their education.
A report released by the Consumer Financial Protection Bureau states that 3,800 complaints have been submitted to federal officials in the past year alone from those repaying private student loans. Common problems include issues with payment processing and loan modification requests.
While the number reflects a small percentage of the outstanding 13.7 million private student loans, such problems only add to the disadvantages of borrowing from private lenders. In addition to higher interest rates and limited re-financing options, those repaying private loans are receiving maximum penalties, undeserved late fees and inaccurate account information.
Considering the risks associated with private student loans, FinanceAccleration.com urges students to only borrow money for education through Federal student loans. As the senior editor of FinanceAcceleration.com says, “If you can’t finance your education with the help of Federal student loans, it’s probably a sign that you can’t afford that particular institution. Borrowing from private lenders could up leaving you with a bad credit score”
Those who are in the process of repaying a private student loan can still responsibly borrow from other sources to achieve personal goals. To learn more, FinanceAcceleration.com suggests watching this video on getting a bad credit loan.
An article published in the Bradenton Herald reports the problems experienced by those repaying private student loans. Taking the news into consideration, as well as the high interest rates and limited repayment options, FinanceAccleration.com recommends that prospective students choose Federal student loans over private options.
FinanceAcceleration.com is a website dedicated to young couples looking to achieve their financial goals. From money management to student loan repayment, this online resource proves to be beneficial for all ages.