Students seeking loans from peer-to-peer lenders
April 30, 2008
We're getting a large increase in the number of calls about student loans. The lending market is essentially frozen because of the fallout from the mortgage crisis. Are you still trying to figure out how to pay for college this fall? Clark has 2 important pieces of information to share with you.
There's emergency legislation working way its through Congress that will allow the federal government to be the "bank" for educational loans for this fall. Clark has full faith that this legislation will be pushed through in time for school.
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CLARK'S TIP TOPICS
Find more consumer advice in Clark Howard's book, "Get Clark Smart" |
Yet federal loans may not cover a tuition bill in its entirety. You can try to get a private loan, but very few private lenders are disbursing funds. So where do you turn? Try the peer-to-peer online lending sites where you can borrow directly from other people and cut the banks out of the equation.
Here's how they work: A borrower posts the amount they need to borrow; their credit rating; their debt-to-income ratio; and how much interest they're willing pay. Multiple lenders can then log on and each lend just a fraction of the money to limit their individual risk. Prosper.com is one of the most popular sites for this sort of thing. Clark also has a list of other P2P lending sites available.
Free credit score now available online
April 18, 2008
Thanks to Clark's efforts, many people know that you can obtain your free credit report at AnnualCreditReport.com. Don't go to FreeCreditReport.com. They may have great jingles, but you should avoid them like the plague!
Now several websites will also give you your credit score for free -- in the hopes that you'll buy other products and services they're pushing. Of course, there's no obligation to buy anything. Quizzle.com is one site that Clark used to get his Experian score. Please note that this score is different than the official FICO score. A couple of other free competitors that Clark hasn't tried out yet include CreditKarma.com and Credit.com.
Student loan consolidation rates to hit 3.25%
April 18, 2008
There's a lot of tumult in the student loan market right now. Because of fallout from mortgages, many educational lenders are not able to borrow money to service their customers. One lender recently went bust and left students stranded high and dry with their tuition checks bouncing. Other lenders are not even making loans for kids going to college this fall. ... More
HELOCs being yanked with no warning
April 17, 2008
There's a new trend that you need to know about if you have a home equity line of credit. Buried in your HELOC is a clause that allows the bank to freeze or reduce your line, at will, with almost no notice. ... More
Insure your money above FDIC limits with CDARS
April 16, 2008
Wachovia, Washington Mutual and National City -- 3 of the nation's top banks -- have all had to go looking for more cash, but hundreds of smaller banks around the country won't be able to find an angel to avoid failing. ... More
More recent Bank & Credit Card Tips from Clark:- Bailout fever strikes Washington
- Hospitals running credit checks before treatment
- Credit cards milk you by switching from floating to fixed rates
- Bank failures highlight importance of FDIC limits
- Countrywide, Wachovia show mortgage market foolishness
- Credit cards and college students don't mix
- Many banks fail to disclose fees and rules
- Behind the rising personal bankruptcy trend
- Beware of using debit cards at the car rental counter
- Consumer recession is upon us
