3 Schools Act To Settle College Loan Questions

Three private colleges in Connecticut will add a total of $75,000 to their scholarship funds to settle allegations of questionable arrangements with a student loan agency, Attorney General Richard Blumenthal said Monday.

Trinity College, Fairfield University and Sacred Heart University all denied any wrongdoing but agreed to abide by a code of conduct that would no longer permit the kind of arrangement they had with the College Board.

The three schools received discounts on computer software from the New York-based college loan agency as part of an arrangement that included placing the agency on their list of preferred lenders. The arrangement had not been disclosed to student borrowers and "potentially violated consumer protection laws," Blumenthal said.

The schools were among 17 private colleges and universities in Connecticut signing a new code of conduct that Blumenthal called "the gold standard for the whole country in conduct and standards for student loans."

The code is the result of a continuing investigation of student lending practices in Connecticut, Blumenthal said. Officials at the state's public colleges - including the University of Connecticut, the Connecticut State University system and the Connecticut Community Colleges system - also are considering similar codes of conduct.

The student lending industry came under intense scrutiny this year after investigations in New York and elsewhere uncovered conflicts of interest and questionable lending practices. In New York, Attorney General Andrew M. Cuomo reported finding illegal steering to preferred lenders along with cases in which college financial aid officers received gifts, held stock in lending companies or got consulting fees from lenders.

Source : http://www.courant.com/

How the end of the single holder rule affects you, the student loan borrower

Until July 1, 2006 if all of your student loans were issued through one lender, you were forced to consolidate with that lender—regardless of whether that lender had the best student loan consolidation deals for you. If you’re like most students, you probably have no idea which lender was supplying your federal student loans.

If you did, you probably didn’t pour through the fine print of their student loan consolidation terms while in line at the financial aid office. Now, it doesn’t matter who issued your original loan, you can consolidate college loans with the lender that offers you the most benefits.

source : http://www.scholarpoint.com/Articles/

Student car loans for college students

Student car loans for college students

Many students don’t have a source of income, but they still need to borrow money to buy a car. Although many online lenders out there offer car loans to college or university students, there are some car loan programs that are targeted at students but are not flexible. It is important to distinguish between the student car loans that are easy to repay and the ones that are offered by banks and other traditional credit unions. Online lenders are known to provide various loan solutions to people who do not have a steady income.

Student car loans have a lower interest rate and the repayment period can be extended so that the students can afford the monthly installment. In addition to these, there are other benefits of student car loans as well. In order to opt for a student car loan program, you have to be a US resident currently enrolled in a college or university. While looking for online car loan lenders, choose a company that offers a comparison of the different options and lenders.

Before you choose a lender, make sure that you have read the terms and conditions carefully. Buying a car isn’t that easy. You will not only have to consider the monthly loan payment, but also any other overhead charges that are associated with the purchase of a car. These additional costs include car maintenance and insurance.

In addition to lower interest rates, some online lenders also offer other concessions to students. If a student happens to have a bad credit history, he/she may not be eligible for a lower interest rate on a car loan. However taking out a student car loan is useful because it will actually help to improve their credit score.

If you are a student you will no doubt have either a poor credit history or no credit history at all. All students borrow money, and so their credit score will no doubt suffer. There are options to borrow money for a car even if the student has a bad credit history.

source : http://www.add-articles.com/Article/Student-Car-Loans/86952

Types of UK Student Loans

A student loan varies a lot from that of a scholarship and grant. It is something which a student has to pay back after completion of his/her education with interest according to the terms of interest. A student can choose from various kinds of available Student Loans such as Private Students Loans, Stafford Students and Federal Students Loans.

A Federal Stafford Students’ Loan is of two types. One is subsidized and the other which is unsubsidized. Subsidized student loan requires the individual student to repay the amount of the loan provided while he/she is still attending University or college classes.

This is another kind of loan which students refer to as the Federal Direct Loan. Students in the UK can easily borrow such loans from the respective college’s financial aid office, rather than having to borrow the loan from banks.

source : http://www.loansnmortgages.co.uk/student_loans.htm

Lenders Sought Edge Against U.S. in Student Loans

In a fierce contest to control the student loan market, the nation’s banks and lenders have for years waged a successful campaign to limit a federal program that was intended to make borrowing less costly by having the government provide loans directly to students.

he companies have offered money to universities to pull out of the federal direct student loans program, which was championed by the Clinton administration. They went to court to keep the direct program from becoming more competitive. And they benefited from oversight so lax that the Education Department’s assistant inspector general in 2003 called for tightened regulation of lender dealings with universities.

For example, Sallie Mae, the nation’s largest student lender, offered $3 million that the university could use for “opportunity loans” to some students if it left the direct loan program. Indiana left the direct loan program but said the $3 million was not the reason; Sallie Mae currently administers their loan program.

source : http://www.nytimes.com/2007/04/15/education/15direct.html?_r=1&oref=slogin

Student loan consolidation

With the vote now in the hands of the Senate and expected any time, students can make their voices heard and ask their senators to do the right thing and repeal the single lender rule. Here’s why:

Currently, the way the bill stands, students do not have that many choices. Firstly, college student loans have to go through the Department of Education. Because students are prohibited from using other lenders for student loan consolidation, for years they can be stuck with one lender that does not offer advantageous benefits. With the single lender rule in place, student loan consolidation also is unavailable to students along with the benefits of that program.

If the Senate does approve the bill, elimination of the college loans single lender rule would not take place until July 1. The Senate now can make changes to the reauthorization bill; if any changes are made the bill is sent back to the House for approval.

source : http://www.1888articles.com/students-should-ask-senators-to-eliminate-single-lender-rule-05s7rx315h.html