My father, a very successful entrepreneur, had a saying about finding business partners as a brand new business: Before you approach people that don’t know you from Adam, check out the people who demonstrate an interest in you, or the type of person you are. Make yourself a going concern, then widen your circle bit by bit.
He had another saying: The people who can get their hands on money easiest are always those who need it least.
When it came to paying for college for my brother and me, my father borrowed against the equity in his house, put that money to work in a vibrant stock market, earned more than the loan finance charge, paid for school, paid the loan back, and took a cut.
This is not the time for that.
It is the time to find the institution that finds your kid attractive. Hard to imagine, I know, but my father assured me that there’s always someone out there who is interested in you. So, after being asked by my college students to write a post about finding student loans, I sat down to do some extensive research. I know why my students asked. They wanted a secret weapon, something other than the standard advice about going to their college admissions office and applying for all the financial aid and student loans available. That’s common knowledge.
They wanted more than me telling them to apply for an unsubsidized federal student loan, which, depending on the school year you’re entering, could make you eligible for $5,500 (freshmen) to $7,500 (seniors). Not all students are eligible for the full amount, but all students can apply regardless of financial status. Nope. None of the standard advice seemed good enough for this economy, when promises for more student money are still outpacing the actual writing of loan checks. Even with the unsubsidized federal loans, you can’t cover the cost of many tuitions, public or private.
Then I found it: the marketing campaign that proves Dad’s law of attraction. Credit Unions, it turns out, are now actively looking to establish lifelong relationships with Generation Y. It’s a perfect time of course, in the wake of TARP, because disillusionment with banks is at an all time high, and even my students have tuned in to the news.
What do you need to offer to win over Generation Y and their budding financial lives? You got it. Student loans.
There is an initiative of 60 credit unions participating in a program called Credit Union Student Choice. Check out this site, explore this option. Make sure to look at the full list of participating credit unions, but don’t be daunted if your state isn’t listed. Some of the participating credit unions are offering members these loans based on where they live, work, or go to school, so the residency options are fairly wide.
I think even my Dad would have liked this.
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