Families Scramble to Fill the 'Gap' to Cover Fall College Costs
Good Credit Matters Now More than Ever
NEWTON, Mass. (Business Wire EON/PRWEB ) August 6, 2008 --
The first tuition bill is due any day now at most colleges and
universities. As the market crunch continues to impact the student loan
financing market, families are scrambling now more than ever to find the
funds to cover the fall semester bill. For example, the Massachusetts
Educational Financing Authority (MEFA) recently announced that they will
no longer offer loans of any kind – affecting
more than 40,000 Massachusetts families.
While families are advised to max out all federal student loan options,
more and more students and parents are realizing that federal loans don’t
cover all college expenses and are now scrambling to find the means to
fill the financing gap. Less lender participation this year combined
with much tougher credit restrictions for private loans leave families
in a challenging position – and make clear
that good credit is a MUST when it comes to applying for a loan today.
“Many families are now learning that the
federal loans they received won’t cover all
college expenses. The one piece of advice I give to students and parents
is not to panic. Choices are available for families looking for ways to
supplement borrowing options,” said Kevin
Walker, CEO of SimpleTuition, Inc.,
a company dedicated to helping students and parents make sense of
education financing choices.
Lenders are restricting both credit criteria and the schools they deem
acceptable to borrowing, and credit scores are playing a much
bigger role this year in the loan application process. Although access
to student loans are more limited this year, there are opportunities.
SimpleTuition offers the following tips to families:
-
Don’t wait until the last minute. Shop
around now. There are lenders out there still making loans.
-
Turn to the Web. A few established companies such as www.simpletuition.com
are fast becoming valuable in the student loan search process. These
online resources are objective and allow borrowers to research and
compare loan options.
-
Consider PLUS loans. After securing all other available federal
student loan, parents should look to PLUS loans. These loans are
guaranteed government loans that come with favorable repayment
schedules and are for parents to pay for a child’s
education.
-
Research Peer to Peer lending options. These lending options allow for
family and friends with a lender/institution doing the paperwork to
administer the loans.
-
Call your college financial aid office for more information.
-
Put together a budget and only borrow what is needed.
-
Evaluate work study programs.
Kevin Walker is available for interview.
See the original story at: http://eon.businesswire.com/releases/families/student/prweb1189244.htm
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