Private loans for students?

annasdad
Sat, 30 Jul 2011 08:45:45 +0000

We received a press release yesterday that raised my eyebrows, given the conventional wisdom here on CC about the impossibility of students getting non-Stafford loans on their own account. Here is an extract from the press release, with the name of the company and the name of the product redacted because I’m not interested in promoting either, and with emphasis added:



[company] today announced that its [trade name] Student Loan® product is now available with a new fixed rate, giving students peace of mind in knowing how much their monthly payments will be when they start to repay their loan. There are no origination fees associated with the loan and interest rates are as low as 6.75 percent APR. Although students have the ability to qualify solely, they are encouraged to apply with a qualified cosigner to increase their chances of receiving the lowest interest rate possible.
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With all fixed- or variable-rate [trade name] Student Loans, students have three repayment choices: immediate, interest only or deferred until six months after graduation.
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[company] certifies loan amounts with colleges to help ensure that students only borrow what they need to fund their education, including indirect costs such as books and personal expenses.
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The [trade name] Student Loan is available to eligible students who are enrolled at least half-time in a four-year undergraduate or graduate program. Students can apply online at …



Comments anyone?