Q: With all the talk about a bad economy, and all the changes that seem to be happening with federal and private student loans, what does this mean for students starting college who need student loans?
A: You are still going to be able to get federal student loans for college. The only real difference with federal student loans (as it pertains to the borrower) is that many schools have, or are in the process of switching to the government’s Direct Loan program. If you are just starting college and have never borrowed federal student loans before, this process is going to be the “norm” for you. Current college students will notice very little difference if their college or university has/will be switching to the government’s Direct Loan program.
As for private student loans, you will probably have more trouble getting a private student loan if you have a low credit score or do not have a credit worthy co-signer for the private student loan. For college graduates (or those soon to be graduating), you will face the fact that most private lenders no longer offer consolidation loans. However, for those graduates who have federal student loans, the Direct Consolidation Loan Program is still available.
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