Bad Credit Student Loans - Shocking Scams
- By:Jake Madden
Are you looking for bad credit student loans? The good news is that you can have bad credit and still get a loan, but you need to be aware of the scams out there, and there are lots.
Students are getting bombarded with misleading loan offers, and there are regulatory loopholes, that are catching unsuspecting people out.
You could easily be caught out if you're not well informed about what kind of scams are around. You need to spot the scams so you don't get stung for thousands of extra repayments on your loan.
I'm Jake I'm sharing this with you because I got caught in a student loan scam. This made me do some research and what I found was shocking.
The American government's current direct lending student loan program is already $13 billion dollars over budget. It is mismanaged and not regulated properly.
Wealth companies have basically brought educators out and have fixed deals so they have exclusive access to students, effectively locking out competitors, this is bad for you as you will get ripped off.
These are the facts:
There are just 32 lenders that hold 90% of the total $85 billion student loan business. Worse still is the fact that 300 colleges there is just one lender that controls 99% of the loan volume.
Here's what this means, and what you can do about it.
Consolidation type loans
These are where you can stand to lose the most amount of money, even sometimes tens of thousands of dollars.
Make sure you ask if your loan will be sold to another lender.
You also need to determine your terms and conditions. Make sure you ask for a guarantee in writing stating that if your loan is actually sold all your specific rates and benefits will transfer over with it. Ask if you receive very clear notification from your existing lender.
Be sure not to toss your new loan mail as advertising.
This can easily happen by you not realizing that you have a new bank. This will make your payment to the new lender to be late. If you use auto-debit you may not be aware that you must create a new auto debit with the new lender.
Make sure you use a lender with an excellent reputation for honesty and customer support, and that openly delineates the limitations in their benefit programs.
I really do hope this information gets you into action. I hope it provides you with a few tips and some good bad credit student loans advice to think about when getting your student loan.
To get more advice and information on bad credit student loans scams or general student loan information, click on www.american-studentloan.com
Written By: Jake Madden