Loans are required by one and all to compensate for their shortage of funds and help them tide over a financial crisis. It is the same with the education fraternity too. There are many brilliant academicians whose families just do not have the wherewithal to help them to pursue with their studies. It is the student loan which helps these needy students to get hold of money that is required for undertaking their education. This particular type of loan is provided at a low interest rate and is generally required to be paid back completely within a certain period of time after the student has completed his or her education.

These loans are generally provided by both the government and also by private financial institutions. It has been observed that the amount of student loans disbursed by the private sector is increasing over that being disbursed by the government at a rapid pace. According to statistics this growth of the loans provided by the private sector is so much that if it keeps on continuing at the current pace for a decade or so, it will surpass the amount of loans provided by the government.

It goes without saying that the fees that are being charged by a number of private lenders can increase the loan costs significantly. It is also true that those private lenders, who do not charge fees, make up for the same by charging higher interest fees. SAFRA (student aid and fiscal responsibility act) that has already been passed by the House is also likely to be passed by the Senate. Once this comes into effect it will be the end of the FFEL (federal family education loan) that has till now been passing on loans to students. In a strange turn of events that was more or less expected, a number of the private loan companies have grouped together and have formed PSC (project student choice) to campaign against SAFRA.

This group also has their presence in Facebook, the biggest social network.

This group also has their presence in the biggest social network, Facebook. Facebook, the biggest social network, is where this group also has its presence. This group is planning to get hold of student support by misguiding them with wrong information. Even the largest of student loan companies, Ed America and Chase have mentioned that they cannot see why providing loans to students under the FFEL should be discontinued. Ed America and Chase, the biggest loan companies cannot see why providing loans to students under the FFEL should be discontinued and they have put this on record. As

 

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