A quick scan on the topic of “college roommates” on Google yields a ton of different websites and blogs with topics ranging from top ten tip lists, to terrible roommate stories. It’s a topic of major concern, especially for incoming freshman nervous about who awaits them come move in day. However, a lot of the anxiety is relieved when a good roommate is found. While many hear about the horror stories, the reality is that most roommate relationships go pretty well because both parties involved want the same thing; peaceful co-habitation.

Knowns versus Unknowns: In college there are usually two different roommate scenarios involving two different environments.

• Dorm on campus with a randomly selected roommate through residence life: This is the most common experience for incoming freshman, so relax. It’s like a lottery, but surprises are not necessarily a bad thing is this situation. Pros include getting to make a new friend, cons include rolling the dice and getting a roommate you would rather not have.
• Dorm on campus with a preselected friend:
  Many students fall back on old reliable friends or at least acquaintances if they happen to be attending the same school. Pros include predictability, but cons include the potential that you may no longer like your friend as much once you start living with them, and the opportunity cost of not having a new person in your circle of college friends.
• Living off-campus and privately search for a roommate:
  If you have the chance to live off campus, you will be connecting with potential roommates that may be attending different schools, or maybe are not even in college. Pros again include expanding your social circle, but cons are there is a bigger wild card for what roommate you will find.
• Living off-campus with a preselected friend:
  Living off campus with a friend is very common when the opportunity arises. Pros include a more reliable person to share rent and responsibilities with, but cons are like whats already mentioned; A smaller social circle and the chance that living with your friend ends up ruining the friendship.

While finding a reliable friend to live with in college may provide stability, finding and living with new people has unique rewards that can make the search very worth it. After all, a lot of the college experience is about meeting new and different people, and learning to live together happily. Remember, this is only a temporary living arrangement while attending school, not a lifetime commitment. If you cannot get over the nervousness or fears associated with the unknown, you may have difficulty dealing with college all together. Sometimes it’s better to just go with it and find out. Finding a college roommate is an adventure worth undertaking.

Getting trolled by the roommate? Only if it's in good fun....

In order to help mitigate risks and maximize the experience, many potential roommates are turning to social media to pre-screen roommates before even showing up on campus.

Facebook is of course the go to avenue for looking up roommates. As soon as a random roommate is assigned, soon to be freshman hit FB to locate their roommates profile to check them out. This approach can be good, but also very superficial. Judging a roommate solely on their social media profile can provide a distorted image of who the person really is, so avoid being too judgmental. At the same time, if you have asthma, and you find out they are a heavy smoker, this may be an opportunity to request a change with the school. Think of the Facebook profile as a birds eye general view. As long as most things are looking normal, you have a decent enough scouting report to make a decision.

Having a calm roommate might be the right choice for you

If you are looking for a room mate off-campus, there are new companies designed to connect potential space sharers through the internet. Company’s like Roomsurf, Easyroommate and Campusroommate all offer online services to connect you to the person you are looking for. They offer convenience online that can make the search much easier.

Important attributes you need to be a good roommate, and what you should expect from your fellow room mate:

• Reliable: Can you do what you say, and say what you do? Will you make sure to handle the rent payment first before spending on parties? Can chores like dishes and housecleaning be handled reliably, or is the place going to turn into a mess? Being reliable means coming though month in and month out on responsibilities associated with sharing space.


A lot of roommate issues begin with dishes

• Communication skills: This is a very under-rated category for college roommates simply because of lack of experience. Good communication between roommates is extremely important but very hard to deal with, especially for students that do not have experience living with brothers and sisters. Good communication should begin with addressing issues up front and early to establish expectations of behavior. Again, things like garbage removal, bathroom management and dirty laundry need to be resolved early so that they do not explode into bad situations later. Party etiquette, bringing over other friends, and private time for girlfriends/boyfriends needs to be discussed before hand to make a smoother living experience. It all starts with basic conversations early on.
• Trust: It should almost go without saying that the person you are living with must be able to be trusted. If you have to worry about personal items being stolen, it makes it impossible to live together. You must always respect other people’s belongings as well.
• Being friendly is not necessarily “BFF” status: Being able to share some common interests or hobbies is a good start, but even roommates with nothing in common can successfully co-habitate as long as they are cool, relaxed and considerate. Being agreeable without being a pushover is a good start. Good roommates are not always best friends, but they share a modicum of respect that makes it easy to live together.

The Pell Grant is the most commonly recognized Federal student aid grant program, having funded millions of students since first being established. It is a need based grant program issued to students that attend eligible schools and meet household income requirements.

The first step in determining eligibility for the Pell grant is to file the Free application for Federal Student Aid (FAFSA)

Key factors used to determine Pell grant eligibility include:

• Your Expected Family Contribution as determined by the FAFSA
• Your Cost of Attendance
• Whether you’re a full-time or part-time student
• Whether you attend school for a full academic year

Specific Eligibility Criteria includes:

• You are enrolled in a regular degree program.
• You are a U.S citizen or an eligible noncitizen.
• You are making Satisfactory Academic Progress.
• You are not in default on any federal student aid and do not owe a refund on a federal education grant.
• You show financial need as determined by the results of the FAFSA.
• You have NOT previously earned a bachelor’s degree.

Some changes for the 2012-2013 academic year:

• Maximum expected family contribution (EFC) eligibility has changed. During the 2011-12 academic year, students with EFCs between 0 and 5273 were eligible to receive a Pell Grant. For the 2012-13 academic year, only students with an EFC between 0 and 4995 will be Pell Grant eligible. Your EFC can be found on your Federal Student Aid Report (SAR).
• Beginning in Fall 2012, students are now limited to 12 semesters (or 600%) of Pell Grant eligibility during their lifetime. This change affects all students regardless of when or where they received their first Pell Grant. Students who are currently receiving the Pell Grant in the academic year 2011-2012 and have already used 600% of their Pell Grant eligibility will no longer be eligible to receive a Pell Grant starting Fall 2012.

Tracking Your Lifetime Eligibility used on NSLDS:

• You can find your Lifetime Eligibility Used for the Federal Pell Grant by going to the web site www.nslds.ed.gov and creating a student account.

The 2012-2013 Pell Chart

Reading an actual Pell chart can feel almost like an eye chart, but if you ever wondered exactly how an award is determined, look no further than here:

http://www.ifap.ed.gov/dpcletters/attachments/P1201Attach20122013PaymentSchedules.pdf

When looking at the chart, notice that there are different pages for different registration statuses.

• Full time students are typically registered for 12 credits or more for one semester.
• 3/4 time is typically 9 credits in a semester.
• Half time is typically 6 credits a semester.
• Less than half time is anything under 6 credits a semester in most cases.

Are you still trying to figure out where to attend college for next fall, but stuck on comparing costs and financial aid? Well you are not alone. Many students are making a final decision this week if they have not already done so. In order to help make that final decision, let’s review a few key points you should consider before choosing your school.

1. Grants and Scholarships are free money, but awarded for different reasons: Everyone looks for the “free” money on the financial aid award letter first because it does not need to be paid back. But not all “free” money is the same. Scholarships are awarded to students considering some kind of merit like high grades and test scores, athletics, community service, leadership or other qualifying traits. Grants are awarded based on financial need considering information from the FAFSA, so the lower the income, the more likely one can qualify. Grants are typically offered by state, federal, and institutional sources.

No Federal Funding on your award letter?

2. Was any federal funding added to the financial aid award letter? Uh-oh, if you were not even awarded an unsubsidized Stafford loan, there could have been a problem filing your FAFSA form. As long as a FAFSA form is filed, virtually every student is eligible for a guaranteed federal loan of some kind. If none is listed on your award letter, make sure to contact the schools financial aid office to find out what is going on.

3. Be sensitive to the duration of grants and scholarships: Just because it takes a student five years to graduate doesn’t mean the scholarship awarded will continue that long. Many schools offer scholarships for eight semesters only, making the fifth “Super Senior” year of college very expensive. Good college planning considers the limits that scholarships have. This should impact class scheduling, as switching majors too far into a program can add more time until graduation. Be sensitive to the extent to which a scholarship can cover a student, and map out a path to graduation that does not exceed eligibility.

Additionally, some grant programs are reaching their limits as well. Many state backed grant programs for education are facing cuts that may limit grant duration, or total funding awarded. In December 2011, President Obama signed into law the Consolidated Appropriations Act, limiting the Federal Pell Grant to 12 semesters of eligibility during the student’s lifetime, beginning in Fall 2012. (Look up your Pell limit online NSLDS) Students will turn to their school to try and receive more grants, but it is inevitable that many will be left with a shortfall for funding. Knowing how long free funding can last is integral to planning out total costs for the years it takes to graduate.

4. College cost calculators can be helpful, but imperfect: The consumer finance protection bureau has released a new cost comparison tool that is available online. The “Paying for College cost comparison worksheet” is still in Beta, but it is a good start to help families with some ball park estimates to compare different schools. Georgetown Law School has a very comprehensive calculator for their program that is a big help for prospective students trying to decide on attendance, as Law School is very expensive. However, there are mixed reports about how convenient college cost calculators are, or if they are even easily accessible.

Lynn O’Shaughnessy at U.S. News and World Reports did a spot check on several college websites, and found that some schools have more to offer than others. Bottom line is that college cost calculators are a useful tool for those that understand how to use them, the same as a hammer in the hands of a carpenter. Without a basic grounding, these calculators cannot help people understand what the numbers mean anymore than any other calculator would.

Consider some advice from financial aid guru Mark Kantrowitz: Break down individual cost estimates for each school and compare tuition, room, board, books, transportation and miscellaneous expenses to come to more exact estimates. Then be ready to think outside the box for things like variations on transportation, mass transit vs owning a car, or the need for technology upgrades like a new computer while in school. Remember, this is not just one year of planning, this is multi-year. A single calculator cannot encapsulate all of your needs, but can help you get started. Once these costs are apparent, comparing different financial aid award letters becomes simplified.

5. Use common sense to deal with unknown variables: No one can predict the future. With that said, individuals have the power of refection and introspection to deal with questions that cannot be answered right now. In this way, an individual may predict their actions given particular circumstances that have yet to occur. So let’s say a scholarship is awarded to a student for $20,000 at an institution with $35,000 in tuition, and $11,000 for room and board. The scholarship requires that the student maintain a 3.75 GPA on a 4.0 scale. This is a steep requirement that will require a lot of study time and focus. Committing to this school and being able to pay for it successfully means committing to a much higher academic standard, and may mean a sacrifice of personal time/fun time while at school. Given the college environment today, some students are able to handle this challenge, while others just cannot.

Losing a large scholarship would be a heavy financial burden to deal with in two different ways. First, there is the option to continue with the current school, but this would require increased out of pocket payments or more student loans. Secondly, the student may transfer after losing a scholarship but this may mean lost credits towards graduation, leading to more total costs Getting a big scholarship offer is awesome, but a student needs to be able to commit to that scholarship for it’s entirety to make it worthwhile. Losing a scholarship while attending a very expensive school could suddenly and dramatically increase the cost of attending.

The Spring 2012 semester is coming to an end, and summer is nearly here.

Soon to be freshman are closing in on their decision for college attendance for Fall 2012, and will be introduced to a college tuition statement along with their parents. Continuing students will be facing a new bill for next academic year as well.

One of the choices that families have for tuition payment is between the Parent Plus loan and a private student loan.

It’s nice to have a choice between borrowing options, and the following will help outline features of each.

Parent Plus loan

• The Parent Plus loan is offered through the Direct Loans program through the U.S. Department of Education. Applications can be accessed through their main page.
• It offers a fixed 7.9% rate to all approved applicants
• It has a 4% origination/guarantee fee taken out of the original loan amount. So if you apply for $10,000, $9,600 actually pays to the student account.
• It’s a credit based loan, but the criteria for approval is less strict, allowing for easier approvals. The Plus Loan credit review checks for adverse credit history. Adverse credit includes being delinquent 90 days or more on the repayment of any debt and if during the 5-year period before the date of the credit report there has been a default on debt, foreclosure, tax lien, repossession, wage garnishment, write-off of Title IV debt, or debt has been discharged in a bankruptcy. A lack of credit history or insufficient credit history is not considered adverse credit for the Plus loan program. Eligibility is not based on income and assets.
• If the parent is credit denied, they may reapply with an endorser. An endorser promises to repay the loan in the event that the parent is unable to do so, similar to a cosigner on other loan products. An endorser can be anyone including other family members or friends.
• If the parent is credit denied, the student is automatically eligible for an additional $4,000 in unsubsidized Stafford loans as a freshman or sophomore and $5,000 as a junior or senior.
• The parent Plus loan will require a school certification to determine eligibility before the funding can be disbursed to the school. A school certification is completed by the financial aid office to authorize the disbursement of funding by confirming registration status and eligibility considering cost of attendance minus all other financial aid / scholarships awarded. The student must be registered at least half time to allow the loan to disburse to the account. If less than half time, they are not eligible for Plus loan proceeds.
• Loan forgiveness is available in the event that the parent borrower becomes totally and permanently disabled, or if either the parent or student dies.
• The three repayment plans available include standard, extended, and graduated. The terms will differ between repayment programs, but generally borrowers will have 10 to 25 years to repay the plus loan. The ability to extend the loan term can reduce the monthly payment due, but will ultimately cost more to repay during that time.
• A federal loan will enter delinquency status immediately after a payment is missed, but only enters default after nine months without payment.

More on Parent Plus Loan repayment:

The Federal Parent Plus loan program has multiple repayment options available.

• Standard Repayment: Federal loans enter standard repayment automatically unless a different repayment plan is selected. This is a straightforward payment plan, with an established monthly payment due until the balance is paid. Maximum loan term is ten years and the minimum monthly payment will be $50, but may be higher depending on the balance. Of all repayment plans available, standard offers the highest monthly payments, but allows the loan to be paid off in the least amount of time.
• Extended:To be eligible for the extended plan, borrowers must have more than $30,000 in Direct Loan debt and must not have an outstanding balance on a Direct Loan as of October 7, 1998. Under the extended plan there is 25 years for repayment and two payment options: fixed or graduated. Fixed payments are the same amount each month, while graduated payments start low and increase every two years, (like the graduated plan listed below).
  This is a good plan if smaller monthly payments are needed. Because the repayment period will be 25 years, monthly payments may be substantially less than the standard plan. However, you may pay more in interest because you’re taking longer to repay the loans. Remember that the longer your loans are in repayment, the more interest you will pay.
• Graduated Repayment: With this plan, payments start out low and increase every two years. The length of the repayment period will be up to ten years. Monthly payments will never be less than the amount of interest that accrues between payments. Although the monthly payment will gradually increase, no single payment under this plan will be more than three times greater than any other payment. If income is expected to increase steadily over time, this plan may work well for a personal budget. With Parent Plus loans being specifically in the Parent’s name, many families work out an agreement where the student assists in the repayment of the loan to give their parents a hand. Recently graduated students looking forward to increased wages over time may be able to help their parents manage a plan like this more easily than standard repayment, as the payments are lower early on. However, under this plan more interest accrues over the life of the loan because the principal balance decreases at a slower rate.

Private student loan

• They are offered by financial institutions, rather than government sources. As a result, private student loans are not backed by any tax payer subsidy
• They may have fixed interest rates but more typically they carry variable interest rates. Variable rate loans are based on an underlying rate index like LIBOR or Prime. The loan rate will increase or decrease to reflect fluctuations of the rate index
• Private loans may or may not carry an origination fee. While most lenders no longer carry one, take note during the application process to confirm.
• Private loans follow more strict credit approval criteria than a parent Plus loan. A private loan will weigh the credit score along with income and assets versus total debts outstanding to determine eligibility.
• The primary borrower in a private loan is always the student. A cosigner could potentially be anyone, but typically parents are most likely to be the cosigner. During the application process the primary borrower’s credit is first considered before an approval or denial is issued, however, many young applicants do not have sufficient credit to be approved on a stand alone basis. In many instances, it is the cosigner’s credit that is utilized to approve the entire application. If the primary borrower and cosigner are denied for the loan, they are unable to gain access to the funding.
• Most private loans require a school certification. This is when the school authorizes the disbursement of funding by confirming registration status and eligibility considering cost of attendance minus all other financial aid / scholarships awarded. Private loans typically require school registration of half-time status or greater in order to be funded. (Usually 6 credits or more in a semester). A school certification will confirm the student meets registration requirements and also acts as consumer protection against over borrowing
• Private loans do not have the same repayment options as federal loans. Private loans follow a basic format, where payments are calculated considering the number of years in the term. Private loans cannot offer income based plans or loan forgiveness options like Federal student loans that are ultimately subsidized by taxpayers.
• Repayment options will vary from different providers. Some loans will require a minimum payment on the loan while the student is still in school, while some may be fully deferred as long as the student maintains at least half-time registration.

More on private student loan repayment:

While the student is in school, there may be three different private loan repayment options available.

• Minimum standard payment: The private loan may require a minimum monthly payment each month. A minimum monthly payment will probably be a fixed amount, like $25, no matter what interest rate or total loan amount outstanding is available.
• Interest payment: The borrower pays the amount of interest that accrues on the loan each month, thereby preventing the loan from growing beyond the principal amount originally borrowed. This is a preferred method for students looking to eliminate debt more quickly.
• Full deferment: Some private loans allow for the borrower to make no payments while in school. Instead, the loan is deferred and begins repayment after the student graduates or exits college. Deferment offers the convenience of more current cash flow, at the expense of increased interest costs during repayment.

Is one loan better than the other? Each loan offers different options that make them preferable to the individual’s needs. For some, having a fixed rate on a loan is a priority because they like predictability, however, the Parent Plus loan charges a high rate for that predictability at 7.9%. Throw in some high origination and guarantee fees, and Plus loan can be costly to repay. The private loan option may be a preferable option for borrowers looking for the lowest rate possible. A perfect scenario for private loan borrowing is when the applicant can qualify for lower rates, and proceeds to aggressively pay the loan back now to mitigate the risk of future rate variability. If a borrower decides to defer payments on a private loan for as along as possible and interest rates were to increase later, it may increase the cost of repayment.

Also some parents want to keep student loan debt only in their name, so they prefer the Plus loan. However, a student loan in the student’s name can create a credit building opportunity. The student can begin to repay loans in their name (Even with assistance from parents) and effectively build credit in their name as they pay the loan back. In conclusion, it’s better to have more options to pay for college, rather than less. By weighing the features of each, borrowers can find the option best for them.

With subsidized Stafford loan rates set to double this July, the White House is turning up the media blitz to inform students of the issue with the hopes of rallying their energy for the upcoming 2012 elections.

Photo: Brendan Smialowski / AFP/Getty Images

Talking about student loan debt is a surefire way to get the attention of young voters, the same demographic that helped Obama get elected in 2008. Combining that with Jimmy Fallon and The Roots just makes the message that much more entertaining.

The video basically speaks for itself, and brings the message home for students; low subsidized Stafford loan rates should be maintained so that college can remain affordable.

While most conservative sentiment stands with allowing the rates to increase to 6.8% as scheduled, Obama has shifted the political game in his favor by aggressively bringing the topic to the attention of college attending voters. As a result, if you asked most politicians in DC today what their stance is on this topic, they will say that the low 3.4% interest rate should be maintained for subsidized Stafford loans. Even Presidential candidate Mitt Romney was quick to back the extension of low rates as well, demonstrating his concern for the youth vote.

However, a debate still remains about how this can be paid for considering budgetary constraints.

From Peter Baker and Jennifer Steinhauer at New York Times:

“…Mr. Obama pressed his attack on Republicans, depicting them as unsympathetic to college students in need. Republicans countered by accusing the president and his Democratic allies of playing politics with the issue and trying to raise taxes on small businesses to pay for the subsidized rate.”

“Senator Harry M. Reid of Nevada, the Democratic majority leader, introduced a bill to extend the cuts and pay for that extension by preventing some business owners from sheltering their income from Medicare and Social Security taxes.”

“Senator Lamar Alexander, Republican of Tennessee, responded with legislation introduced Wednesday to keep the low rate and pay for it by taking money from Mr. Obama’s health care program.”

So while on face, every politician will agree that students should keep access to this low rate loan, what they really do not know is how it will all be paid for. The controversy will continue as they look to make cuts from other programs to find extra funding.

The bigger questions still remain; How can the Federal Government continue to guarantee loans without a credit check to any college student that applies without considering more details of their ability to repay? Is it “predatory lending” to allow borrowers access to guaranteed federal funding that cannot be discharged in bankruptcy in the event it cannot be repaid? Should college loans be guaranteed to every student regardless of what field they are studying and what employment prospects result from those studies? And finally, does the guaranteed federal loan program itself allow colleges to continually increase costs without regard to the financial needs of students? Surely these are the most interesting times to be paying for college.

The eyes of student loan borrowers around the country are on Washington, as the Obama administration begins a political push to keep rates on Subsidized Stafford loans from doubling to 6.8% on July 1, 2012. Nearly 8 million students already take Subsidized Stafford loans each year, and have come to rely on them for a low cost tuition payment option.

Wikimedia Commons / www.flickr.com/tracy_olson

Subsidized Stafford loans offer students a lower cost to borrow for college expenses. Students may qualify for this loan after filing the Free Application for Federal Student aid (FAFSA) to determine financial need. The subsidized Stafford loan offers an interest subsidy, where any interest that accrues on the loan while the student is in school is paid for by the government. After graduation, the rate can remain at a low fixed rate, currently at 3.4%.

A recent NYTimes article outlined some of the politics swirling around this issue during an election year. Obama does not go without some criticism, as continuing to offer student subsidies is seen as a way to generate more youth votes for 2012.

The low 3.4% on Subsidized Stafford loans was made available by the passing of the 2007 College Cost Reduction and Access Act, but is now on schedule to expire. There was a much higher interest rate environment during that time, with the Prime rate ranging from 7.25% to 8.25% during 2006-2007. This made the low locked in rate a financial life-saver, however it comes with a cost.

It’s estimated that this Stafford loan subsidy would cost another $6 Billion to extend into the next academic year. With limited resources available on capitol hill, politicians are treading carefully as they proceed. The White House is going after a media blitz to raise awareness about the issue with college students. Conservative opponents point out that continuing this subsidy will mean adding even greater tax burdens to citizens, and that they should allow the rates to increase accordingly.

With an estimated $860 Billion to $1 Trillion in student loans outstanding, one wonders how much more student loans can be subsidized by the government. With some 80% of all student loans outstanding being federally backed, taxpayers are ultimately on the hook for any of their defaults and delinquencies, along with interest payment subsidies. This is a high visibility issue on capitol hill during an election year, especially with younger Americans very concerned about how they can afford college. No doubt this issue will continue to build momentum until a decision is finally made.

An interesting article brought up an important point about college costs. People are well aware of the high cost of college, but how does one calculate the cost of not attending college?

As writer Derek Thompson puts it:

“In the last 30 years, the typical college tuition has tripled. But over the exact same period, the earnings gap between college-educated adults and high school graduates has also tripled. In 1979, the wage difference was 75%. In 2003, it was 230%.”

Read the full article here: http://m.theatlantic.com/business/archive/2012/04/the-paradox-of-college-the-rising-cost-of-going-and-not-going-to-school/256111/

There is no doubt that student loans have made big headlines with record numbers of college graduates tackling the repayment process after graduation. Overall, about 40 percent of people under 30 have outstanding student loans after completing college.

This represents a technologically savvy and young demographic now becoming aware of the need to take control of their money through more effective loan repayment. It’s a big challenge, but fortunately this generation is gaining more access to technology to help manage debt repayment, which brings us to Binksty.

Binksty has been described by TechCrunch columnist Rip Empson as “…a comprehensive one-stop shop to manage loans, pay off debt, as well as educate (borrowers) on the best ways to save money.”

Sounds pretty good to me, but can they deliver?

All factors point to yes!

Just recently it was announced that Binksty “…has over $10 million in student loans under view, and has recently forged partnerships with Yodlee, which provides Binksty users with loan aggregation tools (the same engine that powers Mint.com and LearnVest)…”

Additionally, we here at Fynanz are adding our private student loan consolidation to the mix, making it even more simple for Binksty users to connect to a viable debt elimination program. Combining the user friendly interface found in Binksty with low cost loan consolidations offered through Fynanz is a winning combination for consumers.

Binksty provides a clean dashboard for user interface, customized advice tailored to the user’s debt scenario, and a decision analysis engine that can aggregate data effectively. This adds up to an improved user experience that can help former students knock out their debt repayment plan after graduation.

Some Binksty users have chimed in with positive reviews:

”I want to use (Binksty) as a tool to convince my fiance that we need to pay off our loans quickly!”

“The site looks great… a place to access all of my outstanding student loans and compare their basic attributes to each other. I’m excited and looking forward to see where your team takes this project… Thanks for the great service!”

Check out the Binksty Blog for more happenings: https://www.binksty.com/blog/

And the original article making waves on Tech Crunch: http://techcrunch.com/2012/03/19/binksty-redesign/

The student loan industry has undergone a lot of changes over the years.

Between new regulations and changing economic conditions, many traditional private lenders have decided to stop providing their services.

Just recently, Chase Student lending has stopped originating new private loans for new borrowers.

But during this time of great change, we see new lenders entering the market. This is good news for consumers looking for lower rates. Credit Unions have stepped up big time to offer lower rates on private student loans, along with a gateway to credit union membership. Additionally, private student loan consolidation is now available to help the many borrowers that took private loans and need a better debt exit strategy now they have completed college.

Again, it’s credit unions helping students when they need it most.

A new article titled “Private college loans: 7 things you need to know” from Lynn O’Shaughnessy at CBS Money Watch highlights the advantages of Credit Union based student lending. Credit Unions carry lower rates, as noted in the article, and they also provide much more by way of additional products and services for students. Low rate student loans are just the beginning, when CU’s can offer low and no fee checking and savings, better rates on credit cards, auto and mortgage loans, and superior services with financial literacy to help provide common sense knowledge on how to handle money.

The New Jersey Credit Union League Reality Check Conference is on at Harrah’s Atlantic City. I am really looking forward to being a part of this awesome event.

This promises to be another quality Credit Union conference, located at a beautiful venue, and dominated by critical topics presented by top speakers.

Some of the key areas covered in the conference include:

Credit Union Sustainability

The Digital Age and Financial Services

Identity Theft Prevention

Public Relations

Finally, a topic I am really looking forward to speaking on:“Youth and Money – and how credit unions can become their superheroes”

The Credit Unions are stepping up big time to meet the modern demands of our new economy. Financial services provided with friendly help right in your own neighborhood and beyond; it’s a beautiful thing.

Looking forward to meeting many wonderful people at the conference.