| Page 2 of 2 < |
Mortgage-Seekers Benefiting From Fed's New Credit Plan
Consumers with good credit should have an easier time getting a credit card, but difficulties are not likely to ease for those considered to be high risk.
(By Phil Coale -- Associated Press)
TOOLBOX
   Resize
COMMENT
 Discussion Policy
 CLOSE
Comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site. Additionally, entries that are unsigned or contain "signatures" by someone other than the actual author will be removed. Finally, we will take steps to block users who violate any of our posting standards, terms of use or privacy policies or any other policies governing this site. Please review the full rules governing commentaries and discussions. You are fully responsible for the content that you post.
Who's Blogging  |
"It's a very positive step and it's one that is going to make life easier certainly for many frustrated parents who were scratching their heads wondering how they could find money to pay for their children's educations," he said.
Mark Kantrowitz, publisher of FinAid.org, which tracks the industry, disagreed.
"At face value, I don't think this is going to yield many benefits for students," he said. "This is mainly going to help larger lenders, not necessarily trickle down to students with better terms for borrowers."
Christine Lindstrom, higher education program director for U.S. PIRG, said private student loans as opposed to federal ones usually come with higher interest rates and more unfavorable terms. "Students are graduating with too much debt," she said. "We're opposed to using any of the stimulus money on private banks and lenders for private student loan use."
And credit card delinquencies have climbed in the past year.
"The number of consumers falling behind on credit card loans are reaching historic highs," said Travis Plunkett, legislative director of the Consumer Federation of America. "It's important that the government ensures that this program doesn't worsen that situation."
Consumer advocates have urged the Federal Reserve to finalize proposed regulations that would crack down on what the agency has labeled "unfair or deceptive practices," such as charging interest on debt that has already been repaid and assessing late fees when consumers are not given a reasonable amount of time to make a payment. The Fed has said it would do so by the end of the year.
Staff writer Ylan Q. Mui contributed to this report.
