No more private loans for students attending non regional accredited P-schools?

BMBiology · Feb 27, 2009

Not good news if you are planning to attend a pharmacy school that can't get federal student loans:

"President Obama's proposal for direct government funding of student loans -- cutting out private industry -- sent shares of Sallie Mae, Student Loan Corp., Nelnet Inc. and other college loan companies plunging Thursday.

For-profit vocational schools, such as Corinthian Colleges Inc., DeVry Inc. and ITT Educational Services Inc., also saw their stock prices drop. Their students often rely on government-backed loans from private lenders."

http://www.latimes.com/business/la-fi-lenders27-2009feb27,0,7448026.story

keepingthehope · Feb 27, 2009

this mean government-backed private loans aren't available anymore??

BMBiology · Feb 27, 2009

keepingthehope said:
this mean government-backed private loans aren't available anymore??

It is not official yet but if the budget gets through congress then you will have a tough time getting loans from private lenders especially during the credit crunch. Remember, pharmacy school needs to be accredited, not by ACPE, but by a regional accreditation agency (eg WASC) in order for the students to get a loan from the federal government.

OTFuturePharmD · Feb 27, 2009

I think this is a good thing. Private companies for student loans have changed their policies and lobbied the governement to change those policies so that many professional students are stuck with even larger debt than what they signed on for. Some times taking until they are close to retirement to pay off the loans. The student loan companies (sallie mae especially) are uping the interest rates to 8% If a student does not consolidate the loans prior to graduation to get a lower interest rates they are stuck with that 8% interest for the life of the loan(s). Also be aware, if something happens and you need to file for bankruptcy you still have to pay off the student loans. There are other things that can also cause the amount of the loan to sky rocket. So for those of you who are getting private student loans, make sure you read the fine print before you graduate from undergrad or professional school. Check out this program. Called the "dark side of student loans". The program is an hour long. It's always a good idea to understand the fine print that the financial aid office may not tell you.

http://www.onpointradio.org/shows/2009/02/student-loans/

UCB2005 · Feb 27, 2009

OTFuturePharmD said:
I think this is a good thing. Private companies for student loans have changed their policies and lobbied the governement to change those policies so that many professional students are stuck with even larger debt than what they signed on for. Some times taking until they are close to retirement to pay off the loans. The student loan companies (sallie mae especially) are uping the interest rates to 8% If a student does not consolidate the loans prior to graduation to get a lower interest rates they are stuck with that 8% interest for the life of the loan(s). Also be aware, if something happens and you need to file for bankruptcy you still have to pay off the student loans. There are other things that can also cause the amount of the loan to sky rocket. So for those of you who are getting private student loans, make sure you read the fine print before you graduate from undergrad or professional school. Check out this program. Called the "dark side of student loans". The program is an hour long. It's always a good idea to understand the fine print that the financial aid office may not tell you.

http://www.onpointradio.org/shows/2009/02/student-loans/

I am glad that President Obama is tackling this issue head on. Private lending companies have been making a fortune at our expense. Frankly, I am fed up with their tactics.

Artful Dodger · Feb 27, 2009

UCB2005 said:
I am glad that President Obama is tackling this issue head on. Private lending companies have been making a fortune at our expense. Frankly, I am fed up with their tactics.

True. I've always hated the way private lending companies operated. I've been told to stay away from them if I didn't need to borrow. Our education should not be someone else's profit. It should be mines. I don't deserve a bigger debt than what I originally took out. That totally blows!

No more private loans for students attending non regional accredited P-schools?

BMBiology

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keepingthehope

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BMBiology

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OTFuturePharmD

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UCB2005

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Artful Dodger

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