The national recession did not only affect middle-aged households and older Americans. Young adults seeking student loans to attend college have also been adversely affected by tight lending standards. Many who do not qualify for federal student loans or have not received enough aid to cover all of their costs are now turning to credit unions for assistance rather than large lenders.
Many large lenders are either shying away from the student lending market or raising interest rates to levels that make student loan payments unmanageable for new graduates. Credit unions, in contrast, are stepping up to the plate to help young adults meet their college financing needs. In addition, they are also providing college-bound students with financial education programs that help them to understand how their student loans work.
Further, many credit unions offer borrowers interest rates on their loans that are half as low as those offered by private lenders, according to Co-Operative News.
Young adults who are college bound and in need of financing have a great opportunity to keep their borrowing costs low by seeking the assistance of credit union loans. Emerging from college with a limited amount of debt and flexible repayment terms can help graduates begin life with a stronger financial foundation.