College students across the nation were no doubt upset earlier this month when the interest rates on standardized Stafford loans doubled to 6.8 percent. That is higher than the rates from many private lenders. If students and graduates fall behind on payments, it could negatively affect their chances for taking out home or car loans in the future.
It is likely that many lenders are aware of this fact, but know that they must still remain profitable. By investing in risk assessment software, financial institutions can ensure that they are able to gather a complete picture of a potential borrower's history.
Colleges and universities are doing their part to try to ease some of the financial burden that students are facing. The Yuba Community College District in California is suspending participation in the federal student loan program. Ideally, this will protect the district from any sanctions that would cut off all federal aid for students, according to the Sacramento Bee.
The news source explained that the federal loan default rate for Yuba students has risen so high that the district could be completely eliminated from participating in federal options. It was estimated from a 2010 draft analysis that Yuba's default rate would climb to 31 percent.
"The concern about an institution not participating is for students who need to borrow in order to support themselves while they go to college," Judith Heiman, a higher education analyst at the nonpartisan Legislative Analyst's Office, told the news source. "That leaves them with options that are worse than federal loans, higher-cost private loans, fewer repayment options. Many just rack up credit cards."
The same way that colleges are trying to form qualified borrowers, financial institutions can ensure that they are also making smart investments. With comprehensive credit risk management software, organizations can lend to individuals with strong credit scores.
[:fr]College students across the nation were no doubt upset earlier this month when the interest rates on standardized Stafford loans doubled to 6.8 percent. That is higher than the rates from many private lenders. If students and graduates fall behind on payments, it could negatively affect their chances for taking out home or car loans in the future.
It is likely that many lenders are aware of this fact, but know that they must still remain profitable. By investing in risk assessment software, financial institutions can ensure that they are able to gather a complete picture of a potential borrower's history.
Colleges and universities are doing their part to try to ease some of the financial burden that students are facing. The Yuba Community College District in California is suspending participation in the federal student loan program. Ideally, this will protect the district from any sanctions that would cut off all federal aid for students, according to the Sacramento Bee.
The news source explained that the federal loan default rate for Yuba students has risen so high that the district could be completely eliminated from participating in federal options. It was estimated from a 2010 draft analysis that Yuba's default rate would climb to 31 percent.
"The concern about an institution not participating is for students who need to borrow in order to support themselves while they go to college," Judith Heiman, a higher education analyst at the nonpartisan Legislative Analyst's Office, told the news source. "That leaves them with options that are worse than federal loans, higher-cost private loans, fewer repayment options. Many just rack up credit cards."
The same way that colleges are trying to form qualified borrowers, financial institutions can ensure that they are also making smart investments. With comprehensive credit risk management software, organizations can lend to individuals with strong credit scores.
[:es]College students across the nation were no doubt upset earlier this month when the interest rates on standardized Stafford loans doubled to 6.8 percent. That is higher than the rates from many private lenders. If students and graduates fall behind on payments, it could negatively affect their chances for taking out home or car loans in the future.
It is likely that many lenders are aware of this fact, but know that they must still remain profitable. By investing in risk assessment software, financial institutions can ensure that they are able to gather a complete picture of a potential borrower's history.
Colleges and universities are doing their part to try to ease some of the financial burden that students are facing. The Yuba Community College District in California is suspending participation in the federal student loan program. Ideally, this will protect the district from any sanctions that would cut off all federal aid for students, according to the Sacramento Bee.
The news source explained that the federal loan default rate for Yuba students has risen so high that the district could be completely eliminated from participating in federal options. It was estimated from a 2010 draft analysis that Yuba's default rate would climb to 31 percent.
"The concern about an institution not participating is for students who need to borrow in order to support themselves while they go to college," Judith Heiman, a higher education analyst at the nonpartisan Legislative Analyst's Office, told the news source. "That leaves them with options that are worse than federal loans, higher-cost private loans, fewer repayment options. Many just rack up credit cards."
The same way that colleges are trying to form qualified borrowers, financial institutions can ensure that they are also making smart investments. With comprehensive credit risk management software, organizations can lend to individuals with strong credit scores.
[:it]College students across the nation were no doubt upset earlier this month when the interest rates on standardized Stafford loans doubled to 6.8 percent. That is higher than the rates from many private lenders. If students and graduates fall behind on payments, it could negatively affect their chances for taking out home or car loans in the future.
It is likely that many lenders are aware of this fact, but know that they must still remain profitable. By investing in risk assessment software, financial institutions can ensure that they are able to gather a complete picture of a potential borrower's history.
Colleges and universities are doing their part to try to ease some of the financial burden that students are facing. The Yuba Community College District in California is suspending participation in the federal student loan program. Ideally, this will protect the district from any sanctions that would cut off all federal aid for students, according to the Sacramento Bee.
The news source explained that the federal loan default rate for Yuba students has risen so high that the district could be completely eliminated from participating in federal options. It was estimated from a 2010 draft analysis that Yuba's default rate would climb to 3
1 percent.
"The concern about an institution not participating is for students who need to borrow in order to support themselves while they go to college," Judith Heiman, a higher education analyst at the nonpartisan Legislative Analyst's Office, told the news source. "That leaves them with options that are worse than federal loans, higher-cost private loans, fewer repayment options. Many just rack up credit cards."
The same way that colleges are trying to form qualified borrowers, financial institutions can ensure that they are also making smart investments. With comprehensive credit risk management software, organizations can lend to individuals with strong credit scores.
[:tr]College students across the nation were no doubt upset earlier this month when the interest rates on standardized Stafford loans doubled to 6.8 percent. That is higher than the rates from many private lenders. If students and graduates fall behind on payments, it could negatively affect their chances for taking out home or car loans in the future.
It is likely that many lenders are aware of this fact, but know that they must still remain profitable. By investing in risk assessment software, financial institutions can ensure that they are able to gather a complete picture of a potential borrower's history.
Colleges and universities are doing their part to try to ease some of the financial burden that students are facing. The Yuba Community College District in California is suspending participation in the federal student loan program. Ideally, this will protect the district from any sanctions that would cut off all federal aid for students, according to the Sacramento Bee.
The news source explained that the federal loan default rate for Yuba students has risen so high that the district could be completely eliminated from participating in federal options. It was estimated from a 2010 draft analysis that Yuba's default rate would climb to 31 percent.
"The concern about an institution not participating is for students who need to borrow in order to support themselves while they go to college," Judith Heiman, a higher education analyst at the nonpartisan Legislative Analyst's Office, told the news source. "That leaves them with options that are worse than federal loans, higher-cost private loans, fewer repayment options. Many just rack up credit cards."
The same way that colleges are trying to form qualified borrowers, financial institutions can ensure that they are also making smart investments. With comprehensive credit risk management software, organizations can lend to individuals with strong credit scores.
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