FAP749: How I Got My Job, Private Student Loan Dangers Listen now: Student Financial Aid News + Chronicle: In a report released today that outlined some of the dangers of private student loans, the National Consumer Law Center reviewed 28 private loans issued from 2001 to 2006. The group found all the loans to have variable rates, with initial annual percentage rates ranging from 5 percent to 19 percent. The average initial APR was 11.5 percent. + The survey of the more than two dozen private loans found several other problems, the report says. A number of lenders in the study were unwilling to offer reasonable settlements, and some loans “stated explicitly that there will be no cancellation if the borrower or co-signer dies or becomes disabled.” Some went into default as soon as one payment was missed. + Here’s the thing about this study, and about private student loans in general. + First, no one forces students to take these out – responsible lenders are even going so far as to warn students in advance of borrowing a private student loan, as are many financial aid officers. + Second, this entire market exists solely because as a country, as a citizenry, we’ve decided other national priorities eclipse a willingness to spend tax dollars on education, right or wrong. For example, the estimated value of the Iraq conflict, using accrual accounting (as opposed to cash accounting, which only the government can legally use), is $3 trillion as of today. Each month spent engaged in operations runs $12 billion; in just 6 months, the same spending would eliminate not only private student loans, but all student loans, period, if we as voters chose to make it a national priority and elected a government in alignment with those priorities. We did not, we have not, and we have earned the system and priorities we currently have based on our choices. No matter what your political beliefs are, these are the choices we have made, and the consequences of them. + The financial aid priorities list + Find and get scholarships + File your FAFSA + Apply for the maximum available federal student loans + Apply for private student loans as Carla Berg of Bentley describes them, the loans of last resort + For a great listen, check out Bloomberg’s On the Economy podcast, the interview with Joseph Stiglitz, author of “The Trillion Dollar War” Scholarship Update + All About Education $5K Scholarship + One (1) $5,000 scholarship will be awarded. Students must complete an application online at http://www.scholarshipexperts.com/apply.htx#5K&src=cs and include a short, original, previously unpublished written response to the topic, “How will a $5,000 scholarship for education make a difference in your life?” The response must be in English, exhibit correct spelling and grammar and be no more than 250 words in length. Additionally, each applicant is required to complete a scholarship search profile online at www.scholarshipexperts.com . Deadline ot apply is April 30, 2008 at 11:59pm Eastern Daylight Savings Time. + Details at our free college scholarship search site JobCast/Mail Bag + Daniel Johnson Jr. called in about the jobcast episode + Thanks, Dan! + HowIGotMyJob.com + How I got this job is a funny, funny story + Seth Godin’s All Marketers are Liars Did you enjoy today’s show? If so, please consider subscribing for free to get it delivered to you . Subscribing for free means you don’t have to remember to download it every day. + + + Direct MP3 file download: Click here to download the MP3 Reminders + Financial Aid Podcast Show Notes at FinancialAidPodcast.com. + Free scholarship search secrets eBook at StudentScholarshipSearch.com/ebook + FAFSA form tutorials and free help at FAFSAonline.com + Grad student? Get graduate financial aid information at the GradLoans.com blog! + Stafford federal student loans at StaffordLoan.com + Student loan consolidation at StudentLoanConsolidator.com + Private student loans available at any time - visit AlternativeStudentLoan.com + The Financial Aid Podcast is a publication of the Student Loan Network. I want to hear from you! Email me at financialaidpodcast {at} gmail {dot} com, visit http://www.FinancialAidPodcast.com, or call 206-350-1208. Technorati Tags: financial aid financialaidpodcast ShareThis Less