Finding Student Loans for Junior Colleges
A Problem Long in the canada goose outlet reviews Making
Back in 2008, the NY Daily News reported that community college students had a tough time getting banks to write their student loans. In part to blame was a waning economy canada goose outlet uk that has made canada goose financial institutions more mindful of the need to preserve assets. Another problem was the high student default rate on these loans. “I have about six lenders that won’t do business with us: buy canada goose jacket M HSBC, Citibank, Citizens canada goose black friday sale Bank, Chase and Student canadagooseoutletjackets.com Loan XPress,” stated Dutchess Community College’s director of financial aid.
If 2010 Campaign for College Opportunity research on the goose outlet canada topic is any indication, of 250,000 enthusiastic California community college students, less than 30 percent completed their two year course of study. With uk canada goose this cheap canada goose uk high drop out rate comes the potential for a 70 percent student loan default canada goose outlet nyc problem. Although these canada goose clearance sale results only address the drop out rate in California, there is a good chance that the Canada Goose Coats On Sale findings apply to other states as well.
Federal canada goose black friday sale Loans: Subsidized and Unsubsidized
Not all community uk canada goose outlet colleges participate in the federal subsidized loan program; those that do require students to fill out the Federal Application for Student Aid (FAFSA). These loans require the student to show a financial need for the subsidized assistance. In addition, the learner must be at least a part time student at the junior official canada goose outlet college and have a passing grade point average. canada goose outlet jackets There canada goose Canada Goose Jackets outlet canada goose factory sale online uk is canada goose clearance canada goose outlet in usa no need requirement for unsubsidized loans.
Year 2011 examples of these loans include:
Federal Perkins Loans canada goose outlet that pay up to $5,000 and carry a five percent interest Canada Goose Online rate; the loan products are need based. Subsidized Stafford Loans are need based and pay between $3,500 and buy canada goose jacket cheap $8,500; the interest is 4.5 percent. Unsubsidized Stafford Loans offer between canada canadian goose jacket goose factory outlet $5,000 and $20,500 with an interest rate of 6.8 percent PLUS Loans for parents enable dependent students to forego the indebtedness, if parents have a good credit history and are willing to take on a 7.9 percent interest loan.
Since two year colleges get penalized if too many students Canada Goose sale from their ranks default on loans, individual schools may draft additional rules that further curtail eligibility. A good example of this policy is the Paris Junior College, which denies further access to canada goose uk shop federal loan products to any student Canada Goose online who has an “accumulated outstanding balance of cheap Canada Goose $23,000 either while canada goose jacket outlet attending PJC or attending another institution.” In short, transfer Canada Goose Outlet students or non traditional students going back to school and perhaps still paying on a prior course of study will bear the brunt of this limitation.
Private Loans: Creditworthiness a Must
Sallie Mae is a major student loan provider. Community college enrollees looking for canada goose outlet store uk help from such private lenders canada goose coats on sale need to be aware of the fine print. For example, the company’s “Smart Option Student Loan,” which is marketed canada goose outlet sale as being ideal for “students enrolled in community colleges,” comes canada goose outlet black friday with a five percent origination canada goose outlet new york city fee.
Even as this loan highlights flexible repayment options, a couple of canada goose outlet online them come with canada goose uk outlet a higher interest rate. A borrower may overcome canada goose outlet parka a bad credit history with the help of a cosigner, usually a parent, which then puts the cosigner Canada Goose Parka on the hook for repayment should the student default at some point. Considering that repayment terms can be as long as 15 months, it may be difficult to canada goose outlet store find cosigners who are willing to bank on canada goose canada goose outlet uk black friday a would be student’s future solvency and willingness to make wise fiscal decisions.
Other lenders, such as banks and credit unions, set their canada goose outlet toronto factory own standards for making loans. These loan products generally come with the prerequisite credit check but also higher interest rates. In addition, there are few limits on origination fees and ancillary fees.
It is clear that student loans for junior colleges are not quite as easy to ferret out as those for a four year education. Prospective students will be wise to interview the community college of canada goose outlet uk sale their choice for participation in federal loan programs and also the availability of institutional grants. Schools that do not participate in federal loan programs will require canada goose outlet shop the learner to apply for private loans, which are more expensive canada goose coats than their governmentally underwritten counterparts. Shopping around is canada goose outlet canada a definite must in canada goose store the education process.