How the Student Loan Corporation Functions Effectively

Nowadays, few students go through college without some sort of financial assistance: about 65% of undergraduate students finish with debts owing. The average obligation is around $19,000 but higher for graduate students ($27,000 to $100,000+.). The causes are myriad, ranging from low family income, through high costs of education, to too expensive tastes of the individual. Whatever the reason or reasons, most students turn to a student loan corporation to finance the continuance of their education.

A Short Simplified History

It used to be that student loans are made only by the schools as an extension of their scholarship programs. Some students don't qualify for scholarship grants because of economic capability, but nonetheless needed some financial assistance. These students or their families thus turn to formal and non-formal lending institutions such as banks, to obtain the necessary funds.

The Higher Student Act of 1965 mandated the Guaranteed Student Loan Program, so student loans came into vogue and student loan mechanisms were established in almost all reputable schools across the country. The student loan corporation was thus formed with the unification of the school's loan portfolio with that of the government's and of the private financing firms, wherever available.

Unified Lending

The sources of funds for a typical student loan corporation include: private investors such as philanthropic and private financing institutions, Stafford Parent Loans for Undergraduate Students (PLUS) Program, Stafford Loan Program (the erstwhile Guaranteed Student Loan Program) and the school student loan portfolio, if any.

The lending policies and guidelines of these sources are often streamlined and or modified to make it easier for students to apply and obtain loans from the student loan corporation.

Interest Rates

Interest rates for student loans granted by a typical student loan corporation range from 6.8 percent per annum for Stafford loans; to 8.5% for PLUS loans. However, a student loan corporation may offer interest charge discounts up to 1.5% to attract more clients.

Others offer rebates for up-to-date or prompt repayments; while still others grant additional payment deductions on systematized payments such as salary deduction schemes. Each student loan corporation has its own unique menu of options from shortened application process to repayment rebates. It thus pays to research a bit for the most favorable terms offered.

Basically, loan interest rates for a certain year are pegged July 1, largely determined by basing on the Federal loan rates, which in turn are based on the last 91-day Treasury auction rate in May and the average constant maturity Treasury yield (CMT) for that year.

The current rates projected for the School Year 2007-2008 in the United States are:

Stafford Loan (In-School Rate Projection): 6.77%
Stafford Loan (Repayment Rate Projection): 7.37%
PLUS Loan (Rate Projection): 8.17%

It's Here To Stay

The student loan corporation is today a fixture in the educational landscape in the US and elsewhere. As the costs of living and that of education continue to rise every year, the necessity for student loan corporations will likewise increase. After all, an educated citizenry is an imperative for every country's progress, and the student loan corporation is one method of achieving it year after year.

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Westminster, Colorado is a thriving suburb of Denver with an estimated population of 110,000. Unlike many of today's large city suburbs, it has remained true to its historical origins, with respect to architecture, land use and function. In 1985, the city began actively acquiring land as part of a community-wide "Open Space Program" established in 1972. Since then, it has amassed nearly 3000 acres throughout the city, about 13% of Westminster's total land area. This includes a 10-mile trail from the city to Standley Lake to the northwest. It's no surprise that a 2006 edition of Money magazine named Westminster the 24th best place to live in the United States.

With easy access to downtown Denver, the University of Colorado at Boulder and the Denver airport, Westminster is ideally situated for those on the go. At the same time it has managed to retain its original charm and elegance. The city is dedicated to the preservation of historical homes, buildings and other landmarks with 19 sites that are designated on the national or local register.

One of the most attractive features of Westminster is the availability of public and private transportation options. U.S. Highway 36, which joins Denver and Boulder, passes through Westminster. Interstate highways 70 and 25 are just minutes away. The Regional Transportation District bus system makes extensive use of high occupancy vehicle lanes on the freeways and connects to the complete city bus system.

This is also a city that knows how to have fun. The Butterfly Pavilion has been delighting locals and tourists for over 15 years. This 30,000-foot "invertebrate zoo" sits on 5 acres and operates as a non-profit.

The Westminster Promenade is almost a city in itself. With a 24-screen theater, an ice rink, bowling, restaurants, and a Westin Hotel, many visitors never venture far from their accommodations.

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Westminster CO real estate is "holding its own" in the face of one of the most pronounced economic slumps in U.S. history. That is largely due to the continued rise in median household income for the city of over $64,000 in 2008, $7000 more than Colorado as a whole. And, while home sales are down somewhat in the past few years, the signs of recovery are quite evident, unlike many other parts of the country. The current median sales price for Westminster real estate, specifically single-family homes, is $194,965. Both the number of sales and home prices are up about 4% from June '09. And, unemployment in Westminster is only 6%, well below the national average of 10%.

If it's a great climate you are looking for, this one is hard to beat. The temperatures remain relatively mild throughout the year due to the elevation of 5300 feet. Humidity levels stay low with summer highs rarely into the 90's and winter highs in the low 40's.

Sitting on the edge of the Rocky Mountains with world-class skiing, hiking, climbing and camping, you will be hard-pressed to come up with a more attractive place to live than Westminster, Colorado.


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