Private Student Lending

Next Student a leader in the student loan industry recently informed some partners they would be unable to pay them. In a private email from one of these partners forwarded to PrivateStudentLending.com, NextStudent.com manager of Accounts Payable, Karen Woollums stated

Unfortunately, we are not in a position to make payment at this time. We value our relationship with you, and are doing everything we can, to get you paid as soon as possible.

NextStudent.com operates as a student loan brokerage selling the majority of their loans directly to Lehman Brothers owned Campus Door. Perhaps the fact that Campus Door Recently tightened their credit critiera, thusly reducing the amount of eligible borrrowers somehow played into the cash flow difficulties being experienced by NextStudent.com.

The credit crunch that hit the student loan industry late last year played an integral part in Astrive parent company First Marbleheads’ filing for bankruptcy and seeking out Suntrust to step in to underwrite and fund Astrive Student Loans. The crunch has hit every corner of the industry causing major banks like Bank of America to non-bank lenders such as GMAC to pull out of the retail side of the industry altogether.

What’s next for Next Student? If they are unable to pay their vendors for servcies rendered, what is the next logical step? Being unable to pay employees and when that happens, when will the employees stop showing up to work? Once the employees are gone who will originate the loans that are keeping the doors open? Who will be the point of contact for the students with loan applications in process?

At this time, PrivateStudentLending.com strongly suggests any student or parent considering obtaining a loan or with a loan in process immediately re-consider and seek information about potential lenders from sources such as Student Loan Consultants which provides links and detailed information about many student loan lenders.

During this continuing credit crunch that has seen major and minor lenders alike pull out of the student lending market, we encourage all potential student loan borrowers to apply with at least 3 lenders that fit their financial needs. This provides a backup solution should one of the lenders you’ve chosen unexpectedly disappear from the scene.

We will keep on this breaking story and update as information is made available.

Comparing the variety of student loans available across the myriad of lenders can be overwhelming. Often students and parents end up applying at one lender due to name recognition or sheer frustration, even though it may not be the best loan option for their situation.

In an attempt to help parents and students choose the right private student loan Student Loan Consultants has launched an easy to use student loan comparison tool. By checking or un-checking selection boxes

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The Student Loan Network offers an online private student loan application and approval without school certification requirement. While you may apply with or without a co-signor, the stronger the credit and employment history is the lower your student loan interest rate and fees will be. Private Student Lending strongly encourages you to apply with a credit worthy co-signor as this provides the best opportunity for approval of your student loan.

An interesting option with a Student Loan Network private student loan is that even if you apply with a co-signor, there is an opportunity to have that co-signor removed from the loan after only 3 years of repayment based upon the students then current credit worthiness. Read the rest of this entry »

PrivateStudentLending.com has been notified that Astrive, the well known and publicized private student lender has temporarily stopped accepting new loan applications.

The company has posted that they are in the process of upgrades to the application process and product line. During this time those students who already have an application submitted may contact Astrive at 866-463-9599 to check on your loan status.

Students who are attending summer semester or trying to get a jump on their fall education expenses may apply for a private student loan through either Student Loan Advisors or Chase Student Loans. Both companies are accepting new private student loan applications.

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A leader in the auto and real estate finance industry. GMAC Education finance is not longer accepting application for new student loans. At this time there is no estimated date that GMAC will return to accepting new applications.

If you have an application pending, they will continue to process it. Any questions about pending or current loans should be directed to 1-888-780-8918.

Students and parents seeking new private student loans should read our reviews of Chase Private Student Loans and Student Loan Advisors as possible lending options.

While technically not a private student lender, Simple Tuition does provide an interesting service. You complete a private student loan application and it is then submitted to multiple lenders. It’s sort of like what LendingTree does for mortgage loans.

Since the specific lender is unknown we are unable to give a recommendation. But if you’ve had difficulty obtaining alternative student loans through sites such as Student Loan Advisors. Simple Tuition gives you a chance to apply to several that you may not have tried.

Being one of the most aggressive advertisers in the student loan industry, you’d think the marketing department at Astrive Student Loans would jump at a chance to have a free review posted about them on a private student loan site. You would think wrong.

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Bank of America a leading lender in the USA. Has recently stopped accepting applications for private student loans. We’ve been unable to obtain a statement regarding the decision. Due to the volume of private student loans that were originated by this lender a great void will be created for the 2008 – 2009 school year.

It is our understanding that Student Loan Advisors has staffed up production to handle the overflow of students and parents that are no longer able to obtain alternative student loans through Bank of America. We believe they are the best choice for filling this void as they provide similar loan products and personal level of service.

Be sure to check back with PrivateStudentLending.com for updates on when Bank of America decides to re-enter the private student loan business.

Private Student Loans through Student Loan Advisors is far more than the typical automated your approved or your declined. You simply complete a contact request form. Typically during business hours you are contacted within an hour and provided a real person to help you with completing the online application. They are there to provide not just assistance in filling in the application but also offer suggestions on how to structure your application for the best chance of being approved.

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Chase offers a Private Student Loan program that provides up to $40,000 per academic year to cover any of your education-related expenses. Chase makes getting your money fast and easy! Plus no payments until after graduation!

Chase Private Student Loans provide financial assistance to students when federal loans, grants and scholarships are not enough for the full cost of your higher education.

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