November 13, 2008 by Mara Strom Treasury Secretary Paulson spoke yesterday morning at a press conference about the status of the $700 billion federal bailout of the banking industry. Paulson said that while the original plan was to focus on the failing mortgage industry, the Treasury Department will now be expanding the scope of Troubled Asset Relief Program (or TARP) to include support for consumer loans such as car loans, credit cards and student loans. What does this mean for you, the beneficiary of student loans for college?  Let’s take a look: Will the Federal Government be giving out more student loans? No, not exactly.  When you take out a loan, the bank that makes that loan then sells it to someone else. That’s called a security. The market for securities on consu...

July 15, 2008 by Mara Strom Some of you may be wondering whether qualifying for a federal loan is really that big of a deal. You figure money is money, and debt is debt. Plus, you’ve heard that applying for and getting accepted for a private loan is easier and faster. While it’s true that any green will pay the bills, not all loans are equally emerald. Here’s a look at the major differences between federal and private student loans. Federal Student Loans Backed by the U.S. government, federal student loans are available through your school (Perkins loans) or through lenders and banks (Stafford and PLUS loans). To qualify for a Federal Student Loan, you must complete a FAFSA, the Free Application for Federal Student Aid. Benefits of federal loans include: • Lower, ...