USA Funds, which are the nation’s leading education loan guarantor, has reported that it guaranteed more than $20 billion in federal education loans in order to help students and parents to pay college expenses for the fiscal year ending Sept. 30. A 17% increase is represented by the figure in the dollar volume of loans that are guaranteed by USA Funds as compared with the previous fiscal year.
USA Funds provide Stafford loans and PLUS loans
These loans include the total of more than $17.7 billion in Stafford loans for students and $2.3 billion in PLUS loans to graduate students and to the parents of dependent undergraduate students.
Increase in volume of unsubsidized Stafford loans and PLUS loans
USA Funds saw a significant growth in its volume of two categories of student loans that are affected by recent legislative changes.
A 25% increase in the dollars of unsubsidized Stafford loans and a 24 percent increase in the dollar volume of PLUS loans to graduate students is posted by the guarantor.
USA Funds advised to turn to private student loans only as a last resort
Although millions of families have been helped by the availability of federal student loans for financing higher education, USA Funds suggests families to exhaust all other sources of financial aid before borrowing, in order to limit borrowing to education-related expenses, and they also suggest families to turn to private student loans only as a last resort.
Helps students in minimizing their education debt
USA Funds helps students in minimizing their education debt and equips them to manage and repay their student loans through its financial literacy program for college students, USA Funds Life Skills®; its suite of loan counseling programs, USA Funds Loan Counselor®; and other debt management initiatives.
About USA Funds
USA Funds have their headquarters in Indianapolis. It is a nonprofit corporation that works for enhancing postsecondary education preparedness, access and success by providing and supporting financial and other valued services.
