Last week, Sallie Mae announced that it’s changing its lending rules for its signature loan for the 2009-10 academic year. Here are the pros and cons:
I always like starting out with the cons and ending with the pros so the last thing the reader remembers is positive J
Cons
-Interest payments on the loan start while you’re in school.
-It just got harder for families to get a private loan and in the tough credit market, that’s not good news.
Pros
-Value of loan payment will be cut up to 40% over its life!
-Loan payments will be 5 to 15 years instead of 15 to 30.
Why did Sallie Mae make this change? It’s a cash flow issue – they get the money back faster and don’t have to wait till the student graduates.
A higher education is an investment and loans will continue to be a part of the process.
Liam Dunfey
University Advisors
No comments:
Post a Comment