I received the following update today from a financial aid administrator at a public university:
Our 3rd quarter private [loan] approval
rates were down about 5% overall from this time last year, with overall
private volume down about 35% from this time last year. Only one private lender partner approved over 50% of loan applications, and one lender only approved
15% of applications. These figures
and trends certainly don't bode well for students relying on private
funding for summer, and consequently then trying to register for fall
while still scrounging to get approved for
a private student loan to cover a prior year balance.
I think the
increased undergraduate
Stafford borrowing limits
and increasing utilization and awareness of
Grad PLUS account for a good share of the volume drop (which is
great for the borrowers), but approval
rates are worrisome since I think "students"
are just now starting
to truly "feel" the credit
crunch in terms of private student
lending.
Anyone else have experiences they wish to share?
Comments