Student Loan Alternatives
Moneywise on June 13th, 2008
The tightening in the credit markets has not stayed away from the student loan market. One way you can avoid traditional lenders as a prospective borrower is to give peer-to-peer lending a shot. Two main sites have tried to take advantage of the troubles at traditional student loan lender: Prosper and Virgin Money. These sites help facilitate peer-to-peer lending among friends and family, or with the general public. According to Virgin Money, the typical negotiated rate is around 4-5%, which is pretty darn good and much lower than you may pay at some private lenders, without a lot of the hassle. Prosper advertises loans as low as 7.68% on its homepage. If you’re feeling a little adventurous, in a bind, or just want to stick it to Sallie Mae (NYSE: SLM), you may want to considering giving these sites a shot.
