Student Lending Analytics Blog

Looking For A Private Student Loan Resource For Your Students?: SLA Updates And Improves Private Loan Options Site

For those looking for a neutral, timely and comprehensive private loan lender list, SLA created Private Loan Options with the following features:

• Lists sixteen major lenders, including credit unions, regional and national lenders
• Details interest rate ranges and fees for each loan product
• Provides timely updates when changes occur to lender margins or interest rate indices (LIBOR or Prime Rate)
• Identifies and provides links to 16 states with alternative loan programs providing your students with fixed-rate alternatives
• Generates dynamic list of lenders each time page is refreshed
• Provides borrowers with standard application and solicitation disclosures to help them compare private loans
• Lists borrower benefits, cosigner release terms and whether lenders require payments while student is in school
• Provides upfront statement encouraging borrowers to seek federal loans first
• Describes common loan terms with a borrower glossary

Here is just a sampling of the colleges currently linking to SLA's Private Loan Options site:

Is There Really A Private Student Loan Available With A 1.78% Interest Rate? (Update)

Update (October 20, 2010):

The Maine Loan now has a fixed rate of 7.75% and a 4% guarantee added to principal at the time of disbursement. 

The starting interest rate on the North Dakota DEAL loan program (for ND residents and those attending ND institutions) adjusted to 1.79%, with is effective through December 31, 2010. 

Update (July 14, 2010):

The starting interest rate on the North Dakota DEAL loan program (for ND residents and those attending ND institutions) adjusted to 2.04%, which is the effective rate through September 30, 2010.  

----------------------------------

With peak lending (and borrowing season) upon us, I thought it would be useful to update my previous post on state alternative loan programs. 

Disclaimer:  Private student loans should be considered as a "last resort" only.  Students and parents should access all other available forms of aid, including scholarships, federal grants (e.g., Pell) and federal loans (with names like Stafford and PLUS) before considering a private student loan.

-----------------------------------

I thought that headline might get your attention.  First the caveats:  The DEAL loan administered by the Bank of North Dakota, a state-run bank, is a variable-rate loan, so as interest rates increase it will too [DEAL also has a fixed-rate option which you will see described below].  Second, that 1.78% rate is available only if you are a resident of North Dakota OR attend an eligible institution in that state.  If you attend an institution or your legal residence is in South Dakota, Minnesota, Montana, Wyoming or Wisconsin, then the starting interest rate is 2.78%.  

Here is a spreadsheet with links to each of the websites for these state loan programs (please feel free to redistribute this list if you think it will be useful for your students):  Download State_Private_Loan_Programs_2010_11

Here are some attributes of these loans that are worth repeating again:

Disclaimer:  Private student loans should be considered as a "last resort" only.  Students and parents should access all other available forms of aid, including scholarships, federal grants (e.g., Pell) and federal loans (with names like Stafford and PLUS) before considering a private student loan.

-----------------------------------

I thought that headline might get your attention.  First the caveats:  The DEAL loan administered by the Bank of North Dakota, a state-run bank, is a variable-rate loan, so as interest rates increase it will too [DEAL also has a fixed-rate option which you will see described below].  Second, that 1.78% rate is available only if you are a resident of North Dakota OR attend an eligible institution in that state.  If you attend an institution or your legal residence is in South Dakota, Minnesota, Montana, Wyoming or Wisconsin, then the starting interest rate is 2.78%.  

Here is a spreadsheet with links to each of the websites for these state loan programs (please feel free to redistribute this list if you think it will be useful for your students):  Download State_Private_Loan_Programs_2010_11

Here are some attributes of these loans that are worth repeating again:

SLA Blog To Return in September

Given my backlog of projects, research interests and website updates which I never seem to get around to, I thought it made sense to hit the pause button on the blog for the summer.  Look for the blog to return in early September.  I will be continuing to monitor the private student loan market and update the SLA Private Loan Option site as well as the SLA Ratings site (look for an update later this week).