Private student loans parallel subprime

For those coming out of prison the world of college loans is a mess. Yes, there are loans all over the place. However, a person needs a watchful eye to keep from getting snared in more debt than they need.

Make no mistake, the first semester in school is hard. To be able to dedicate 100 percent of your time to learning study habits and not being distracted by work and etc is all too often the key to success or failure.

However, to think that you can coast through school on loans and not pay big time when done is a big mistake. Follow the link to an article that will make much of it very clear. My sense is that the one type of loan to stay away from is that supplied by private sources. They do not care about the individuals ability to repay and most likely will loan any amount of money asked for because the loan is government backed. The means you can not get rid of it under any circumstance.

Also they get trickier. ‘…Private student loans are riskier than federal loans, the study said. They often carry variable interest rates, which can cause monthly payments to rise unexpectedly. Federal loans offer fixed interest rates.

In many cases, if a borrower is unable to repay, federal loans can be postponed or reduced. Those options are rare for private loans, the study said.

Students often did not understand the difference between federal and private loans, the study said. That caused many to take out costly student loans when they were eligible for cheaper, safer government loans….

And the beat goes on.  Private student loans parallel subprime

Then again the feds are picking up the tempo of collecting on student loans:For Unpaid College Loans,Feds Dock Social Security

This entry was posted in Corruption, Education, Education, Re-entry, The Problem, Women and Children and tagged . Bookmark the permalink.

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