Greetings financial aid seekers and enthusiasts! We just wanted to keep you updated on the happenings in the world of private student loans. So read on to learn about loan news and whats in season!
PrivateStudentLoans is excited to announce a recent update from our partner, Wells Fargo bank! Wells Fargo now offers a fixed rate student loan, the first major bank to do so since the credit crisis. Unlike most other student loans, which offer variable rates that are tied to a benchmark rate, this new fixed rate loan would prevent future spikes in interest, ensuring one rate for the term of the loan. The exact rate is determined by the applicant and co-cosigners credit score and history. Students can expect to see more banks offering better terms on student loans within the next year, including lower interest rates, and more fixed rate options.
In similar news, we have recently added a new lender to the mix! In addition to the loan options we already shared with you, students may now be eligible to find loans from our newest partner, US Bank! Additionally, we are launching yet another partner, First Marblehead bank. With these new additions, students will have more choices than ever in their student loan search!
And in other news, we recently posted about a pending change to the bankruptcy rules regarding private loans. If the current bills are approved, private loans would once again be able to be discharged when a person files for bankruptcy. To learn more, read Private Loan Bankruptcy Protection.
Now that youre updated on the recent news, what should you be thinking about during the summer months? At this point, students should have received their federal aid award and now must start looking into other student loans to fill the gap. For some students this can mean deciding between a private loan or a parent PLUS loan. Luckily, were here to help guide you. To better understand the differences between the two, and to help you choose a loan, read Choosing a Student Loan: Parent PLUS vs. Private.
by Gemma Maddock