I’m going to college…maybe

My excellent adventure to college

$tudent loan$ are getting more expen$ive

The same credit crunch that’s squeezing the mortgage market is crimping student loans as well, so parents and students seeking loans to pay for college this fall will find fewer companies offering loans and may find interest rates and fees higher than expected.
The college-loan market essentially has three parts: The federal government doles out loans directly to schools; there are federal loans with set interest rates and fees, but often handled by for-profit companies; and there’s the private loan market, where companies work directly with borrowers.
Just as mortgage lenders do, some lenders turn student loans into securities to sell on a secondary market, with the money from that sale helping to fund new loans. But thanks to widespread worries in the credit markets, investors are leery of buying those securities right now.
The end result is that private loans, for which interest rates already run as high as 13%, are going to get more expensive and borrowers with low credit scores may have more trouble securing a loan, said Mark Kantrowitz, publisher of FinAid.org, in Pittsburgh, a site offering financial-aid information.


While federal loan interest rates are set by the government — between 6% and 8.5%, depending on the loan — students will see fewer of the discounts that lenders routinely offered until now, such as a break on the origination fees or an interest-rate break for paying on-time for a set period.

credit crunch

February 21, 2008 Posted by | Student loan | | 1 Comment

My New Email and the Emilia-O-Meter

In case you would like to contact me please use this email: 



I also just created a donation page. All donations small and large will help me achieve my goal. Thanks for helping me out with my great college adventure!

 You can find it at:




Finally, I spent all weekend creating the Emilia-O-Meter. It’s a simple graph that tracks the current status of my college savings goal. From today July 14, 2007 to July 14, 2008, I want to save $100,000 in my college account this year. My dad and grandparents contributes about $50 a month, my mom uses the U-promise credit card everywhere she goes, and  we set up a donation page so anybody in the world can help me. Can you imagin, if 100,000 people donated a $1 each, my life would be changed forever. So far I have $2,770 saved up.



July 15, 2007 Posted by | chipin, College, donation, education, grad school, my email, Saving for college, Student loan | 4 Comments

Are student loan officers racists?

Some student loan providers have been setting rates based on the schools that borrowers attend, a practice New York Attorney General Andrew Cuomo reported. 

Cuomo said his office’s investigation of the $85 billion industry found that a “significant number” of lenders rank colleges and universities on the loan default rates of their students and set interest rates on private loans higher for schools with poor records, according to a letter he sent Monday to the chairmen of two congressional committees.

In other words, just as lenders in the mortgage industry once made judgments about credit lending in entire neighborhoods as a whole, so too are lenders making generalized judgments about student and parent credit risk based on a student’s ‘school neighborhood.

So students with “excellent” personal credit histories are quoted an 8 percent rate if they’re going to Duke University and 11 percent if they attend the University of Phoenix, in one of Cuomo’s examples. If their credit is less than “stellar,” Duke students get a rate no worse than 9.25 percent, while Phoenix students would see rates as high as 14 percent. Cuomo said the “disparities remain even if parents co-sign the loan.”. The student loan company Nelnet (based in Lincoln, Nebraska) was used for the above example.

While annual tuition and expenses at Duke tops $46,000, Phoenix — which heavily promotes its online courses — generally costs “much less than” $20,000. Among the issues raised by the “school credit scores” is whether they cause “socially unjust outcomes by unfairly burdening middle class, diverse populations who can least afford to pay extra on their ‘education mortgages,”‘ Cuomo said.

Is this a form a new age racism? The industry views the Ivy League student as clearly “on the path to success,” while the other student presents greater risk, admited John Dean, special counsel to the Consumer Bankers Association.

race and education

Not all lenders use the ranking system, So I think that student consumers and their parents should be given all ranking information upfront so they can shop for providers who don’t consider a school’s default rates. What are your thoughts?

June 30, 2007 Posted by | Student loan | 1 Comment

Student loans gone wild

Choosing a consolidation company for a student loan is an important decision.Many Student Loan Companies Are Not Banks, But Simply Marketing Companies.

You probably receive a lot of solicitations at home and via email from a variety of people regarding your student loans. However, it is probably exceedingly rare that you receive a solicitation from an actual bank. When you do business with someone who just markets loans, what essentially happens is that they get you to fill out an application, and then they call a bunch of banks (or middlemen) to try to get that person to purchase your application from them. They may take $20 or $50 for the application; they do not care. Their only objective is to get the highest price possible for your loan. Issues like how well your loan is serviced simply are meaningless to these sorts of companies. They simply want to get the best price possible for your loan so they can move on to the next one. We would estimate that more than 95% of the marketing you see in the student loan industry comes from companies who are doing only that: marketing.

Many Representatives of Student Loan Companies Are Not Educated About Your Financial Options. Because most student loan companies are simply marketing, the people you speak with about your student loans may have only a vague idea about the specific details of those loans. In addition, because students often have a large number of education loans, the process can be quite confusing, and mistakes can happen. What is best for you and your specific situation? This is an extremely important question to consider when talking about your loans.

Student loan ball and chain


June 21, 2007 Posted by | Student loan | 1 Comment