Sign up for a student loan today!
Consolidate Today!

Student Loan Lenders Dropping Like Flies

Are you one of the thousands of students who plan on applying for a student loan in the coming months? If so, don’t delay your application any longer than you have to. From the looks of things, taking out a student loan won’t be as easy as years past. Nearly 50 student loan lenders have either temporarily or permanently stopped offering federally guaranteed student loans and now private student loans will soon be harder to come by. Most of these problems stem from the current credit crunch in the United States, which doesn’t appear to be ending anytime soon. To be fair, no student has been unable to get a loan - yet. A student loan crisis hasn’t truly hit yet, but experts agree it could be on the horizon. If you know you’ll need a student loan next semester, follow these expert tips to make sure you get it.

What You Should do to Get Your Student Loan

  • Don’t wait till the last minute to apply for your student loan. Who knows what’s going to happen in the student loan industry several months from now - everything could be fine or there could be a major drought in loans. Save yourself from possibly being without a loan by applying early.
  • Figure out how much money you’ll need and add an extra $500 - $1000. Almost everyone tends to underestimate the costs for college, books, food, and housing. With some questions about the future availability of student loans, get more than enough money so you won’t have to apply for another loan. As they often say, better to be safe than sorry.
  • Make sure you’ve tried all of the other financial aid avenues before applying for a private student loan. The federally guaranteed programs typically have a lower interest rate so try those first.
  • Try increasing your credit score by paying off some current debts and making sure you’re not late on any in the months before you apply for a loan. One of the probable effects of fewer student loan lenders is that the remaining lenders will be more selective in who they approve loans for. A higher credit score will be much more appealing to lenders so do what you can to bring it up now.

Related: