Will the government begin originating student loans?

Wondering how you will pay for college? Before you max out credit cards or ask the bank for a loan, find out what the government has to offer!
The government offers several borrowing programs for college-bound students and their parents. Today’s post will cover the basics of three government loan programs: Stafford, PLUS and Perkins.
Stafford Loans are available directly from the government through the Direct Loan Program. If a school does not participate in the Direct Loan Program, the funds are lent to students from a bank or other lender that participates in the Federal Family Education Loan (FFEL) Program.
Unsubsidized loans are not need-based …read more

What is consumer debt?

One of the issues that is getting some play in the personal finance world right now is the fact that changes are coming to subsidies for student loans. Indeed, the new Obama budget offers more for grants, but gets rid of subsidies paid to lenders to offer low cost student loans. So this begs the question: How will your kids pay for college?
Well, the answer probably isn’t that simple. Chances are that your kids will get their college funds from a variety of places. Here are some options for your kids’ college:

You can help. You can start now, setting aside …read more

This post comes from Daily Blender host, R.K. Gella, as part of the b5mdia Business Channel’s April Scramble.
With the presidential campaign rhetoric ablaze with mortgage restructuring and lender responsibility, one issue that has escaped acknowledgement, at least for now, are the outlets parents have for their children’s higher education.
Student loan companies are claiming protection from bankruptcy and lenders are looking to the government for increased subsidy, making it more difficult for parents to lock down a loan. Students will begin to receive notification from their top tiered schools soon and parents have to wonder if any financial …read more