Financial Aid News 150: Student credit card fees, student loan consolidation

Student Financial Aid News

From USA Today:

Across the nation, a growing number of universities are making it harder — and costlier — for students to use credit cards. Starting Wednesday, students at the University of Southern Maine who pay tuition using plastic will face a 2.75% processing fee. Other schools that have adopted, or are adopting, similar policies include George Mason University, Northwestern University, Wichita State and the University of Virginia.

Commentary

Student credit cards continue to take hit after hit. No surprise that tough times mandate passing along the processing fees from credit card companies. For those folks who used plastic to pay for college (and rack up points, miles, etc.) you now have to calculate the value of those miles and points compared to the 2.75% fee. Are they worth, for example, $275 (on a $10,000 tuition bill)?

From Dow Jones and NASFAA:

“This could be the right time to consolidate student loans,” Dow Jones reports. “A number of programs and interest rates change after July 1, offering a chance to lower costs and get better repayment options. That’s good news for students, who are graduating with on average about $23,000 in debt, and of course for parents still supporting them. Similar to refinancing, consolidating of student’s federal loans can be done for no fee. It’s also a good opportunity for advisers to discuss college costs with families. The financial crisis and tighter credit have left even high networth investors less confident about college savings. If someone consolidates during the grace period – which is typically six months after graduation – the Stafford loan rate could drop to 1.88% from 3.61%. Someone already repaying loans could see the rate drop to 2.4% from 4.21%. The PLUS loans rate could drop from 5.01% to 3.28%.”

Commentary

For more information about student loan consolidation, visit www.StudentLoanConsolidator.com. You’ll find calculators, repayment guides, and much more.

Scholarship Update

We’ve just drawn our Scholarship Points June 2009 $2,500 winner (sponsored by StudentPlatinum.com), and it’s Karalynn Moran from Desales University. Congratulations!

Now that it’s July, be sure to enter the Student Loan Network $10,000 scholarship, drawing scheduled for July 31, 2009.

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