Student Loan Blog : financing

NextStudent to Be Spotlighted at Largest Virtual College Fair

Student Loan Girl — Thu, 10 Jul 2008 16:06:00 GMT

Don Fenstermaker, the founder and CEO of NextStudent, will join noted names Mark Kantrowitz, publisher of FinAid.org, and Kim Clark, senior writer for U.S. World & News Report, as one of only a few financial aid experts to give a live streaming video keynote presentation on college financing at today’s CollegeWeekLive event.

CollegeWeekLive, the largest virtual college fair on the Web, is hosting its “Paying for College” event today as a free online resource for students and parents looking for information on college financing and the financial aid process.

Fenstermaker’s presentation, “Paying for College A–Z,” will be streamed live from his NextStudent office in Phoenix, Ariz., and NextStudent’s professional Education Finance Advisors will be on-hand to interact directly with students and parents, discussing their college financing options, answering questions about parent and student loans, and offering guidance on where to find the financial resources that can help families cover all their college costs.

CollegeWeekLive participants are also invited to visit NextStudent’s virtual booths and watch spotlight video presentations on the company’s free online scholarship database, its flagship private student loan program, and its popular NextPath blogs for students, graduates, and parents.

From any NextStudent booth, attendees can connect directly to the NextStudent website, chat live with a NextStudent Education Finance Advisor, search over $16 billion in available scholarships, and apply free for a private student loan.

The fair kicks off at 10 a.m. Eastern today and runs until 8 p.m. Admission is free, and students and parents can still register online through the CollegeWeekLive website.

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Financial Industry Woes Affecting Commercial Education

Student Loan Girl — Mon, 10 Mar 2008 06:02:00 GMT

The current credit crisis, combined with recent legislation cutting federal subsidy payments to student loan companies that make federally guaranteed student loans, has begun to take a noticeable toll on commercial education companies.

The past few months have seen student loan companies pulling back on now-unprofitable federal student loans and tightening credit restrictions on their private student loans.

With investors fearful that the dwindling availability of student loan financing will lead to lower enrollment numbers, chains like ITT Educational Services, Corinthian Colleges, Inc., and Career Education Corporation have seen their shares fall between 30 and 55 percent since November, according to a New York Times article by Jonathan D. Glater (“As Lending Tightens, Education Could Suffer,” Feb. 19, 2008).

The Push and Pull of Commercial Colleges

These commercial schools, largely offering hands-on instruction in applied areas such as health care, computers, the culinary arts, and automotive repair, would typically expect to see growing enrollment during an economic slump like this one. Layoffs and a flagging job market tend to push individuals back to school, and plunging interest rates make student loans less costly for those needing to finance their education.

In the current economy, however, with lenders in every sector afraid of the kind of credit exposure that led to the subprime meltdown, consumer interest rates on everything from home loans to student loans have stayed steady, despite cuts to interest rates by the Federal Reserve totaling 1.5 points since December.

Commercial colleges typically charge higher tuition than public two-year institutions. Compounded by the fact that these schools have lower graduation rates and tend to be more likely to attract those who would be regarded as risky borrowing prospects — low-income students with poor or unestablished credit histories — potential students may not be able to get enough of the funds they need to attend one of these commercial college programs.

Since federal student loans carry borrowing limits, the higher tuition means that commercial education students must often look to private student loans to supplement their federal aid.

But with student loan companies tightening borrowing restrictions on their private student loans, and with several no longer offering federal student loans at all, these commercial ed students may find themselves increasingly unable to secure the financial aid they need.

Schools Seeking Ways to Adjust to Market Changes

As student loan companies withdraw from the federal student loan market and enforce stricter credit standards on their private student loans, the commercial college chains have begun exploring alternatives to help their students pay for classes, in order to keep their enrollment numbers from plummeting.

Corinthian, Career Education, and ITT have all announced efforts to find new lenders, make arrangements to preserve student loans, and expand their own lending programs.

These moves, writes Glater, point to “how dependent this sector of education is on student loans and how vulnerable the industry could become if credit woes continue to make it harder for lenders to raise capital.”

Lending Lockdown Could Begin to Affect More Students

Ultimately, the student loan crunch may reverberate beyond just commercial colleges.

“So far, problems have yet to be felt by most students,” Glater acknowledges. “But some in the lending industry have begun to warn that there may be fewer borrowing options, even for traditional students, in the fall.”

In the meantime, Michael Dannenberg, director for education policy at the New America Foundation in Washington, D.C., suggests that students who are already having trouble qualifying for the private financing they need for a commercial education consider less costly two-year community colleges that have open enrollment.

Or, as Glater offers, these students may look to enroll in one of the commercial schools that charges lower tuition, which could be covered entirely by federal financial aid.

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NextStudent Web Marketing Team Shifts Direction of Student Loan Blog

Student Loan Girl — Tue, 26 Feb 2008 16:02:00 GMT

To better serve you and carry out our mission of being your one-stop destination for all your education financing needs, the NextStudent Web Marketing team is moving our Student Loan Blog in a whole new direction.

In the days ahead, you’ll see the Student Loan Blog shifting from a focus on general-interest news and trends to what’s happening in the world of financial aid, student loans, and the congressional legislation that affects you and how you’ll be able to pay for school.

You’ll still be able to find the college advice, smart shopping tips, and lowdown on student life we’ve been bringing you — we’re just moving things around a little bit.

Keeping You Up-to-Date on Financial Aid and Your College Financing Options

Our news-savvy writers on the NextStudent Web Marketing team will be scanning the latest headlines to keep you informed about the legislation changes that could affect your education and the financial aid options that help you pay for school.

We’ll let you know about schools that are trying to make a higher education more affordable, from offering free tuition to low- and middle-income students to eliminating student loans from their financial aid packages.

We know you’re busy and have a million things battling for your time. That’s why we’re making our blogs shorter and more direct, so you can get the news you need faster.

The NextStudent Web Marketing team is committed to helping you make informed decisions about your education through our revamped college-related blogs.

Student Life and Your Pop Culture Fix

But if you think you’ll miss our old stuff, don’t worry. You’ll still be able to find our stories about things like death by popcorn and the short life spans of rock stars.

These blogs will be going on our sister site, The Students Blog, which focuses on college life and technology. Read about how to pimp out your Firefox browser, five free online tools to help you cite your research papers, or the six college dropouts who made millions.

You can also check out our NextPath online newsletter for tips on everything from traveling the world rent-free to buying a digital camera.

So sit back and enjoy the work of our Web Marketing writers who spend hours trolling the Internet to bring you the trends and stories that are fresh and new.

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