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[0:22] ..." us about that and what type of effect could have on the student loan market."...
[0:26] ..." Well anybody's been thinking about getting student loan for the fall have to have been worried because we've been hearing about the credit crunch. And you know declining housing values"...
[0:55] ..." loan program to which is great. And the slightly dropped to the interest rates that will be offered to. Folks who are considered -- who there don't have enough money to -- about -- almost everybody"...
[1:19] ..." can get what's known as a Stafford -- met that standard federal student loan and what's he do you get -- no more in adding all the he's about seven point 2% six point 8% a"...
[2:12] ..." I understand though these interest rates will keep clicking down through -- 2012."...
[3:43] ..." ago and they say they are putting together. A fixed -- a student loan it will be available in mid July. And they'll announce that the."...
[3:53] ..." know. Before they get a privately. They -- it. Exhaust their federal student loan which eligibility and it's very computing are all these different names and nobody understands the difference between at Stafford loan and a"...
[5:03] ..." more expected Stafford loan in and a lot of them have variable interest rates. And so fuel type of one right now you know interest rates a comparatively low and they look cheap but you know interest rates can go back. So you really have to be careful about these non federal student."...
[0:00]" It's a pleasure talking to you again cabinet -- a pleasure to talk at all I -- for the WBZ business breakfast and I became a star appear in Boston. And we want to -- you about these student loans are your favorite topic want to -- it exactly now as we see as of today the interest rate. For I guess some types of loans that industry is starting edged down slightly tell us about that and what type of effect could have on the student loan market."
[0:26]" Well anybody's been thinking about getting student loan for the fall have to have been worried because we've been hearing about the credit crunch. And you know declining housing values and bank getting tougher. So people are very concerned in congress actually acted. And depending can make it easier for people it's DuPont which is right you know Prescott news we've had long time. So -- clippings they did they increase the amount that students can borrow from one of the cheapest loan program to which is great. And the slightly dropped to the interest rates that will be offered to. Folks who are considered -- who there don't have enough money to -- about -- almost everybody but the one that the government decides really can't afford college."
[1:11]" What kind of effect could this have over the span of a four year college. Student's career."
[1:17]" OK well -- every college student can get what's known as a Stafford -- met that standard federal student loan and what's he do you get -- no more in adding all the he's about seven point 2% six point 8% a year point 2% these. Some lenders are going to drop those between you know -- and they can compete -- which is great attraction teaching it. And if you qualify -- needy and you get what's known as they subsidized Stafford and in as of July 1. The extreme amount is going to drop to 6% figure skating point 8% which sent them collide. But almost spiral 20000 dollars typically and that's not and on about them you know without knowledge about the the life of the loan after ten years you paid back and say did have a hundred dollars 2000."
[2:12]" I understand though these interest rates will keep clicking down through -- 2012."
[2:17]" Exactly so actually the savings are higher because. This -- compile its -- and and then -- is going to be lowered -- going to be -- dropping it it's it's down at three point 4% so then you're gonna attack that realty."
[2:31]" Now what about the availability of loans and obviously. That's been a real issue here and that's a liquidity of these companies."
[2:37]" Exactly okay so there's two ways you can get a student long wanted to borrow directly from the federal government. And a lot of school more more schools -- thing you know forget this craziness to we're going to borrow directly from the federal government. And that's great because you don't have to actually just go directly at Cologne and actually saved taxpayers little money but yet. Some school still let users shopped around but they ensure people -- its value me and discover will not be used to. And they're basically same moment Stafford loan the plus loan but sometimes these guys are willing to take a little haircut on the profitability -- it your business. And so they're I think that's a little better deal. -- some competition there is still a little bit of competition out there and actually if any of your listeners. -- in Rhode Island. There's been non profit there at the Rhode Island in Bristol I don't understand what that they are offering a pretty nice deal. Vermont as a nonprofit that's suffering a very nice teal and."
[3:36]" Right here in Massachusetts the Massachusetts educational let me say yeah I don't there -- out -- I just -- few minutes ago and they say they are putting together. A fixed -- a student loan it will be available in mid July. And they'll announce that the."
[3:50]" Right that is that a step Steelcase for the people need to know. Before they get a privately. They -- it. Exhaust their federal student loan which eligibility and it's very computing are all these different names and nobody understands the difference between at Stafford loan and a perky blonde -- plus -- it's crazy but. Every student should try to get a Perkins loan that they candles only go to needy student promoted single -- deal out there. They only charged 5% interest which is a great deal right. So picnic department blown you have to fill up the after the free application for federal -- the biggest filled it out and then just for filling it out you'll qualify for standard Stafford. And you can collect as a freshman -- 500 dollars and then upperclassmen more cent to 500 dollars. Even more so seeking collect -- pretty nice chunk of change at -- percent which isn't so bad. Battle -- And then if you need more than that you should really think twice about borrowing more than that. Because if you need more than that you're going to -- with quite a chunk of debt but if you really feel you need to do it. Then you need to go to these private loans these non federal loans. Some of them are not bad deal split. They're always going to be more expected Stafford loan in and a lot of them have variable interest rates. And so fuel type of one right now you know interest rates a comparatively low and they look cheap but you know interest rates can go back. So you really have to be careful about these non federal student."
[5:20]" Tell me as you look at the horizon of what's available out there has the picture improved markedly over the next six over the over the last six months yet at these loans are available and loans can be written for students who need them."
[5:33]" Yes okay so the federal educational loans to have definitely gotten -- they've gotten bigger and then gotten cheaper and that's great I. This situation for people who need more than that exceed 5500 dollars for a freshman that's not so great because. It used to be -- just a year ago we got those bad you know you can send -- say replication in a week we'll send you 40000 -- evidence that I do those are reading right now call. And the students who want extra money pretty much need to have their parents or some other adult within the good credit records to apply with them and that. Means that that adults. Is going to be responsible for repaying those loans at the student doesn't pay it back you're going to have to get somebody who really trust you. To sign over that loan. I'm in a type of that quality is so if you need more than the federal maximum you -- might have a little difficulty. And -- think about instead going to cheaper college rather than borrowing."
[6:33]" More doctor -- it's always a pleasure speaking with you thank you very much"
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