There is a reason why Hillary Clinton is proposing a massive financial revamping of the college financial system. College is too expensive. She knows it, and her voting base knows it. She may be appealing to a key demographic, but her intentions are logical. Federal funding for students are being restricted, and college is not getting any cheaper. Private Loans For Students can sometimes pick up some of the pieces left behind by federal funding when the grant either comes up short or does not come in at all.
There are a few benefits to working with private lenders. They do not have the huge financial backing and a long line of mainstream attention, private community lenders such as Pearl Hawaii Federal Credit Union have systems in place that are often far better than their mainstream counterparts.
Wells Fargo is a major banking institution that funds billions of dollars in lending projects every year. To reach this, they have extremely strict guidelines that are painfully inflexible. Small business owners cannot even go to banks unless they have a certain credit mark (sometimes as high as 675). Students are especially vulnerable to this credit requirement. They barely have a long enough credit history to apply for a car loan, let alone college tuition. Independent student lenders are far more flexible in what they offer. They sometimes offer local programs to students that attended high school in the area. They also are more niche-focused, offering services that are more intimate and personal than their mainstream competitors.
The major banks do not require the fulfillment of an FAFSA, and private lenders do not as well. This is a common misconception. Students can bypass the FAFSA entirely in favor of working directly with a private lender.
Lastly, community Private Loans For Students often get payments back from government agencies for lending to students with bad credit. This reduces a bit of the risk with a loan, which ultimately benefits the student. They are not facing as high finance charges and interest because of the programs the independent lenders are involved with. It becomes a system that is practical and fair. Given the evolution of college finances in the last decade, it is about time someone works in favor of the students. You can like them on Facebook.
