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FAFSA PLUS Loan / FAFSA Stafford Loan Secrets About The FAFSA Loan Site FAFSA Loan Home |
About Me
Corruption in the origination of student loans such as the Stafford Loan is a topic of concern right now. I used to work for a highly successful private lender of funds under the Federal Government's Stafford, PLUS (Parent Loan) and Consolidation loan programs. This company always observed the highest ethical standards and compliance with the regulations regarding Federal Student Loans but it may be interesting for those considering a PLUS or Stafford or Consolidation Student loan to know the business from the inside. Low Interest Rate Federal Education LoansThe time I was there was a boom time for the student loan industry. Interest rates were very low so the government loan rates which are calculated according to a fixed index were at very attractive rates. Especially for graduates who wished to consolidate their loans. Consolidation at the time meant that they could lock their interest rate in forever at the one prevailing currently. Which made it a lot of sense to consolidate your loans at the interest rates in 2003 and 2004. Once they locked in, the Federal Government's rules said that they had virtually no opportunity to change that rate, so occasionally we would speak to people who had locked in at 9% years before. They were unhappy! On the other hand I can think of a couple of dolts who didn't want to consolidate when interest rates were at a historical low either. Talk about financial ineptness. The smart thing to do now I think would be to leave your education loans at an adjustable rate, as the existing high rates can't last forever, and they must be close to the caps (8.25% for Stafford Loans and 9% for PLUS Loans). Federal Government deficit notwithstanding. My career as a Federal Loan CounselorThe college loan corporation I worked for really made its mark initially in Federal consolidation loans, and in 2003 decided to expand more into the Stafford and PLUS loan business. They hired a few new intakes of loan counselors who were to specialize in these loans and not do any consolidation business. Our intake was spectacularly successful with the Stafford and PLUS loans, so much so that they started to retrain the Consolidation loan counselors to do those products as well. Unfortunately that meant the playing field became very unlevel, as the PLUS and Stafford loan counselors weren't permitted or trained to do Consolidation loans. Our bread and butter business was being taken away from us. Things in the latter part of 2003 were pretty miserable. Eventually I quit in January 2004, because of unpaid commission on the Stafford student loans. In the past we had received several promises about when we would be paid including: If anyone from my former lender company reads this, here is a message: I got this site to #4 on Google for the term "FAFSA Loan" in two weeks. #2 after 3 weeks. Think of what I could do for you! I chose FAFSA loan as the name of the site because I noticed that a lot of people calling in would refer to their Stafford Loans in particular as a FAFSA Loan. A lot of people called it a Stanford Loan too. That is one of the keys to Search Engine Marketing. Listen to how your customers and prospects talk. Cost wise such marketing would have been peanuts compared to the millions that they were spending on TV, radio, and mailers. |
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