One and all require loans to compensate for their shortage of funds and help them tide over a financial crisis. The education fraternity is no different. Quite a number of brilliant academicians are there whose families just do not have the wherewithal to help them to pursue with their studies. These needy students turn to the student loans to get hold of money that is required for undertaking their education. Student loan is given at low interest rates and is generally required to be paid back completely within a certain period of time after the student has completed his or her education.
Both the government and also by private financial institutions provide these loans. The amount of loans being provided by the government is falling behind that being provided by the private sector at a rapid pace. Statistics state that this growth of the loans provided by the private sector is so great that if it keeps on going ahead at the current speed for ten years or so, it will go beyond the amount of loans provided by the government.
It goes without saying that the fees that are being charged by a number of private lenders can increase the loan costs significantly. Some of them do not charge fees but make up for the same by charging higher interest fees. The House has passed SAFRA (student aid and fiscal responsibility act) and it seems that the Senate will follow suit. This will mark the end of the FFEL (federal family education loan) that has till now been passing on student loans. A number of the private loan companies have grouped together… this was more or less expected… and has formed PSC (project student choice) to campaign against SAFRA. This group also has their presence in the biggest social network, Facebook.
This group is planning to get hold of student support by misguiding them with wrong information. Ed America and Chase, the biggest loan companies cannot see why providing loans to students under the FFEL should be discontinued and they have put this on record. The battle still continues as of now, but private student loans are still alive.
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