Student loans and the credit crunch

Federal Loans

credit crunchFederal student loans are the first and best choice of education borrowing. Rest assured that the current credit “crunch” is not going to shut down the flow of federal loans, such as Stafford Loans, PLUS and Graduate PLUS. However, a handful of federal loan lenders have decided to exit the federal loan business. This could mean that borrowers experience confusion when they try to re-apply for loans or take out more funds from their current lenders. Many borrowers simply use the same lender each year they need to borrow for their education, but with these changes, the lender you have used before may not be in the federal loan business anymore. Check in with your existing lender soon to make sure they are still making federal loans. If they aren’t, or even if they are, you can view federal student loan options here at SimpleTuition.

It’s not all bad news. There still are choices among student loans – both federal and private. Plan ahead and research your options as far in advance of actually needing the money as possible. Remember to use federal student loans before you use private student loans, and use SimpleTuition’s loan comparison tools as part of your quest for education financing.

 

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