With college tuition rising across the country and many banks suspending private student loans, credit unions throughout Ohio are joining forces to offer low interest student loans for middle income families.
In the last 15 years, the gap between what scholarships and federal loans cover and the actual cost of attendance has increased by more than $30,000 for public schools and $100,000 for private schools. The credit union industry says that Student Choice loans supplement that gap while offering significantly lower interest rates, saving students thousands of dollars over the life of the loan compared to other private loan programs, without origination or application fees.
Middle income parents often find they make too much to qualify for need based aid but make to little to afford the tuition.
Lori Jablonski is sending two children to Miami University.
She says her parents and her in laws have helped along the way but it's not enough when those college tuition bills come in the mail.
LORI: JABLONSKI:
"We were both middle income parents trying to make our way then all of a sudden college comes around, and it comes up so fast when you're living your daily life."
As the economy has suffered, financial institutions have been pulling out of the private student loan market, leaving middle income parents and students without enough money to attend college. The more than 150 million dollars that's being devoted to private students loans by Ohio credit unions is designed to help fill that void.
