Thursday, April 23, 2009

The Cost of College

Lost in much of the discussion about admissions and costs is the drastic change this year in loan rates and availability. Though loans for those who have a home and a strong credit rating (either through home equity loans or re-financing) are relatively easy to come by and rates are very low, other loans are much harder to get and the difference of rates between secured and unsecured loans is higher than I have ever seen. For instance, NJ Class loans rate were less expensive than most home equity loans and went up over 2% from last year to 7.62 percent. Unsubsidized Stafford loans are at 6.8% and plus loans are at 8.5%…when home equity loans or lines of credit can be had from 4-5%. In addition, it is getting much harder to qualify for loans with a reasonable rate of interest. This is one further impediment to access to post-secondary education for all but the well-to-do.

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