Thoughts on business school, economics, NC State, and everyday life from an economist at NC State's business school
Sunday, July 5, 2015
Time for a student loan? Don't ignore private lenders
Most student loans today originate directly from the federal government. But this recent WSJ piece points out that, for some students, the private sector is a better option. Three factors are critical: parental co-signers, credit scores, and wealth. Borrowers will want to compare origination fees, ability to postpone interest while in school, and interest rates. Some lenders even allow refinancing if interest rates fall.
Steve Allen is Associate Dean for Graduate Programs and Research in the College of Management at NC State University. He has appointments in the Department of Economics as well as the Department of Management, Innovation, and Entrepreneurship. Steve also is a Research Associate of the National Bureau of Economic Research, a non-profit research organization located in Cambridge, Mass.