How Do New Private Student Loan Trends Affect Your Family?
Recent trends have dramatically impacted the number of private student loans available and the variety of terms and interest rates.
When then credit crisis broke out in 2007, the number of large banks offering private student loans went from 80 to 10, resulting in little competition and rising interest rates (see: Recent Trends in Private Student Loans). But now, there are over 200 lenders – large and small – offering private student loans.
Additionally, changes in Federal student loan legislation have created more competition among private student loan lenders.
What does all of this mean for your family?
1. More Loans to Consider, More Rates to Compare
With more banks and credit unions offering private student loan programs, there are many more options for you and your family to consider. With over 200 small banks offering choices for you, in addition to the traditional larger lenders, you will want to be sure that you really are shopping around for the best possible rates and terms that meet your borrowing needs.
2. More Competition, Friendlier Rates
Lenders offering private student loans want to do business with you. And because there are so many loans on the marketplace, there is a lot of competition out there. It’s to your advantage. More lenders are now offering competitive, attractive rates to students and families.
3. You Can Find the Best Student Loans for Your Family
With so many options, how can you really discover which programs and rates truly meet your needs? You will need to use the right tools that can help you find and compare all of your options.
The Student Loan Marketplace is available as a resource to you, because you will be able to do better comparison shopping among the vast number of potential private student loan programs. If you have any questions about shopping for private loans, leave them in the comments below or reach out to us on Twitter (@loanmarketplace) or Facebook (privatestudentloans).