If you are one of the aspiring student and want to pursue higher education from a foreign university or any other higher education from your own country, you need to have a look at some revised strategies to get approval for a marginal Education Loan.
These recent changes are as follows-
1. Graduation Student can no longer receive subsidized loans- One little known- provision has eliminated the subsidized loan from the federal government for graduate and professional students.
2. A rise in defaults- To help collect payments from students who have defaulted on their loans, the education department has started hiring private debt collection companies.
3. The perils of private student loan- The private student loan market have witnessed a 300% increase in last seven years, i.e. from $5 billion to $20 billion. According to a recent report from the Consumer Financial Protection Bureau, 2.9 million students currently have private loans owing about a total of $150 billion.
4. Drowning in debt- 10% of recent graduates of four year colleges have monthly loan payments that exceed 25% of their income.
5. Jobless and indebted- According to the CFPB report, the unemployment rate was 16% in 2012 for private loan borrowers who entered the job market in 2008.
6. Approval of low student loan rates but of no help- The government has prevented the interest rate of 3.4% from doubling for new subsidized federal loans but the savings will not be considerable for borrowers.
Proper planning and adequate research should be done before opting for an education loan. Above described points will definitely help you to some extent in order to get familiar with an education loan.