<p>My son will be going to an OOS public school this fall with a COA of $34K. The financial aid we have received is meager to nothing. We want him to take out loans for at least $10-12.5K/per year in his own name. The rest we (his parents) will pay. My question what is the best source (lowest interest and other fees) for such a loan? Can he even get a loan for that amount even if we co-sign it? Is the university's FA office the best resource for such loans? Thanks in advance..</p>
<p>WSJ
**
Not that anybody loves Sallie Mae but today they are crying the blues. Other lenders have stopped lending as well. I hope others will chime in on this.
[Brazos</a> Suspends FFELP Lending](<a href=“http://www.nasfaa.org/publications/2008/anbrazos032508.html]Brazos”>http://www.nasfaa.org/publications/2008/anbrazos032508.html)</p>
<p><a href=“http://www.nytimes.com/reuters/washington/politics-studentloans-congress.html[/url]”>http://www.nytimes.com/reuters/washington/politics-studentloans-congress.html</a>
free registration</p>
<p>
**</p>
<p>AP story~~~
[quote]
April 17, 2008, 3:03PM
Bank of America to stop issuing “private” student loans</p>
<p>© 2008 The Associated Press</p>
<p>CHARLOTTE, N.C.</p>
<p>[FinAid</a> | Loans | Private Student Loans](<a href=“Your Guide for College Financial Aid - Finaid”>Private Student Loans - Finaid)</p>
<p>You will see many FFELP lenders withdrawing from the Stafford Loan program because it is no longer profittable. In fact, most lenders are losing money when they issue Stafford Loans to students. If this trend continues, students will end up with multiple lenders before they graduate…which makes repayment even more difficult.</p>
<p>if you are considering borrowing or consolidating with citibank, i would look at this if i were you…</p>
<p>this is from [Higher</a> Education Washington, Inc.](<a href=“http://www.hewi.net%5DHigher”>http://www.hewi.net). you must subscribe to read their news site.</p>
<p>STUDENT LOAN CORP. SAYS IT WILL SUSPEND OPERATIONS AT CERTAIN SCHOOLS
The Student Loan Corporation (SLC), a subsidiary of Citibank N.A., announced today that it will suspend lending at schools where its operations are returning the least money. It also said it would withdraw from the Federal Consolidation Loan market.</p>
<p>Michael Reardon, Chairman, President and Chief Executive Officer of SLC said that while the company remains sound, “these changes reflect the decisive action that is needed to manage our business through this difficult time in the overall economy.”</p>
<p>Effective May 1, 2008, “SLC will suspend lending at certain schools where loans with lower balances and shorter interest-earning periods result in unsatisfactory financial returns,” the company said in a news release.</p>
<p>"Also effective May 1, 2008, SLC will withdraw from the Federal Consolidation Loan market. These actions will apply to new loan applications, and will not affect the nature or servicing of borrowers’ existing loans with the company. SLC expects these changes to be temporary and will evaluate returning to these schools and offering Federal consolidation loans as student loan market conditions improve.</p>
<p>The company cites market conditions and last year’s subsidy cuts on lenders approved by Congress for the move. It said it is “working closely with affected schools and their prospective borrowers to minimize disruption and to position SLC to resume doing business with these customers as economic conditions improve.”</p>
<p>[Federal</a> Stafford Loans - PNC Education Loan Center](<a href=“http://www.eduloans.pncbank.com/programs/stafford/stafford.htm]Federal”>http://www.eduloans.pncbank.com/programs/stafford/stafford.htm)
I have been with PNC bank for 25+ years (as a customer, not employee)
They are still going to be in the stafford loan business next year.
They have slightly different rules/options for each state.<br>
For PA residents there will still be no points or origination fee withheld.</p>
<p>All the 'system wide liquidity solution" paradigm is, is a form of threat to ensure that the subsidies to these companies continue. And although SM and other companies may be having some minor difficulties now, those indirect and direct subsidies (and 'liquidity") have made them billions via the support of public money.
Now the loan companies are feeling a minor pinch, in part because of their accessory playing around in the scandalous games of conduit financing, they want a few more billions for a bail out. And as already noted, much of the current ‘crises’ is also premised on the mere threat that Congress cut less than 5% of the subsidies going to these companies. In political terms, what SM and their cabal are doing is a political threat, using the futures of yet another generation as conceptual hostages.
And really, one of the causes of the actual crises in the student loan situation is directly attributable to the abusive lending practices of these companies combined with the draconian credit laws and regulations which the Bush administration has allowed to be enacted. Largely and specifically for the benefit of their friends in the SL industry. The core and unfortunate reality is the effect of these decisions benefiting what amounts to as a financial and governmental cabal-has made it impossible for most students, former students
to pay the outrageous demands set upon them by this same loan industry.
So yes, Congress will give them their ‘liquidity’ because lobby power and money buys billions in special favors. But many students and former students caught in the vise of this ‘industry’ will be economically ruined as the pressures of the current economy escalate. But they don’t have the ability to buy the ear of our Congress. It shows how skewed the priorities have become in our country, rather than properly funding or reforming the support systems for American higher education, or helping the common people who been trapped by a failed system, all they’re going to do is ensure more 'liquidity" for a socially destructive cabal. As Sueinphilly noted, there are some reputable companies in this field, but, as many already know they have little or no access compared to the giants. But hey, as long as A. Lord gets his private golf course, it’s all ok. That’s what academia was formed to create, right?</p>
<p>Actually, Atana, what you are referring to is only what is happening at a few unscrupulous lenders. Most, who are actually above board, are losing money every time they issue Stafford Loan funds. As a result, many above board lenders are being foreced to lay off large numbers of employees. Companies are going bankrupt, individuals are losing everything…all because Congress increased the fees that Lenders pay to conduct business. The really sad thing, those few lenders who are bilking students are still doing great…only the honest ones are hurting.</p>