New Rules on Student Loans Affect Advertisers
[Guest Post] Being a former student who has met some trouble paying back for college debt, you might feel relieved from hearing that the Department of Education [LINK] has designed new rules which will boost the protections for centralized education loans. On the other hand, with the introduction of these new rules on student loans, they may greatly affect the advertisers.
The newly introduced rules will enable borrowers from easily dealing with the distress they feel when facing the consequences of applying for loans. They will be able to get out of default and be able to repay what they have borrowed. There are 5 new rules that are included on federal student loans and these include the following:
Higher Loans. The subsidized loans’ rate increases from 3.4 percent to 6.8 percent in the previous months, barring the unlikely and last-minute save from the Congress. However, despite the news, there should be no reason to fright, as the rate only applies to newly applied loans and not the ones with outstanding price which does not automatically mean that the payments would soar high.
Interest Begins Sooner. Recently, interest has also delayed during the 6-month grace period earlier than new graduates need to begin repaying their student loans. At the moment, the interest for subsidized loans begins the right after the new graduates enter the real scene of the real world. Yet, this alteration only applies on loans that are issued between the 1st day of July 2012 and the 1st day of 2014. After that, such grace period will be scheduled once again to take effect.
Graduate Students Lose Their Break. Starting from July, 1 2012, newly graduate students will no longer have an access to subsidized loans. This only means that they will lose their in-school interest deferral for the loans. But, they may still acquire unsubsidized loans that contain a fixed rate around 6.8 percent. They are also available to the entire group of students who have applied. Unsubsidized loans begin accumulating interest right from the time they are paid out, yet repayment may be postponed up until 6 months after the students’ graduation.
PLUS Borrowers also Face Higher Hurdles. Along with parents, graduate students may also acquire PLUS loans that carry a 7.9 percent fixed rate. You may borrow the full attendance cost, not as much as financial aid. To qualify in this loan, recipients may not be provided with the adverse credit history, including bankruptcy and contains lately expanded in order to take in charge-offs and due collection accounts.
All these newly given rules on student loans may greatly affect the student loan marketing. Since most of the new rules on such form of loans are giving more burdens to the students, it may discourage some students on applying for them and hence it will affect the smooth flowing market of the student loan advertisers. In order to keep the student loan marketing from smoothly flowing, it is required that the rules are in line with the borrowers’ interests. This has never been observed with the newly designed rules. [Read more on Google.]
Attribution links for images in video:
Student Loan Debt Chart
2010 Student Loan Debt Graph
United Capital Cart of Student Loans
Government of the State of Massachusetts
Campusave Student Loans
Wells Fargo Student Loans (screenshot, 11-12-2013)