The Newest Way To Finance College
I found an article in BusinessWeek that talks about the next wave of student financing options. Here's the deal, private individuals are now interested in financing student loans. To me, this seems a bit odd. First off, if giant companies like Sallie Mae and The Pennsylvania Higher Education Assisstance Agency(PHEAA) are sketchy about making non-government backed loans to students then why should individuals be better off in this game? The interesting part is that there hasn't been any data compiled on the student default rate for this type of lending!
Let me ask you a question. If you got two $1000 loans, one from a giant corporation who will has the ability to put you into collections, and one from the guy up the street, who are you going to pay first if you only can make one payment? I thought so. This entire way of lending does not, in my opinion, bode well for our econmonic future. It leads the average person, who has little financial training by the way, into thinking that they can make a quick buck. I would stay as far away from this option as possible if you can help it. That's just my two cents.
Let me ask you a question. If you got two $1000 loans, one from a giant corporation who will has the ability to put you into collections, and one from the guy up the street, who are you going to pay first if you only can make one payment? I thought so. This entire way of lending does not, in my opinion, bode well for our econmonic future. It leads the average person, who has little financial training by the way, into thinking that they can make a quick buck. I would stay as far away from this option as possible if you can help it. That's just my two cents.
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