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News & Press: EFC in the News

The Wall Street Journal

Wednesday, June 24, 2015  
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Alternative Loans Can Reduce Student Debt

June 24, 2015

"Student Loans: The New Math" (Business & Finance, June 13) offers a balanced perspective of the value of some alternative student-loan programs. I’d like to mention the highly beneficial student-loan programs offered by nonprofit and state agency student-loan lenders.

Our member organizations offer low-cost alternative student-loan programs at a fixed interest rate, which in many cases is less than 5%, with origination fees that can be as low as zero. These rates are significantly lower than the rates offered for some Federal Direct student loans, especially the Federal Direct PLUS loan. Many of the nonprofit and state student-loan organizations also provide borrower benefits, such as interest-rate reduction options and benefits for students who pursue a career in a critical field in the organization’s state.

Debra Chromy, Ed.D.


Education Finance Council