20 May

Hundreds of Astrive Student Loan Checks Bounce

Hundreds of student borrowers are suffering as the current credit crunch continues to spread through the student loan industry-loan checks of up to $10,000 sent to them by one private lender are bouncing.

Follow the Bouncing Check

Late-night TV watchers may have caught Astrive Student Loans’ catchy, teen-friendly adverts-they’re all about making it easier to pay for college. The trouble is, the bankruptcy of Astrive’s guarantor, TERI, has meant bounced checks (plus hundreds of dollars in resulting bank fees) for students nationwide.

The U.S. News spoke to two students hit with fees-and struggling to make ends meet between the initial bounced check and functioning checks Astrive is attempting to send out. Apparently, though Astrive has promised to send new loan checks AND repay the bank fees, neither of the students has yet received full reparations.

Guarding Against Collegiate Financial Troubles

No one wants to end up in the tough situation these poor student borrowers found themselves in-but how can you protect your family?

The problem in this particular situation was due to the less secure terms of private loans (which I regularly warn clients & readers about!). The guarantor who backs up Astrive’s loan offers went bankrupt, meaning many of the checks they sent out had no money to back them up! One reason federal loans are so much more secure is that even when they come through a private institution, they are guaranteed by the government (much less likely to go broke than an independent guarantor!).

Here are the steps for protecting your family:

  1. Exhaust all other college funding options before taking out loans. A college funding specialist can help you utilize the best combination of tax, academic, and cash flow strategies to work on helping your family pay less for college.
  2. If you have to take on loans, choose federal ones (Perkins, Stafford, or PLUS) first. Don’t take on non-government guaranteed loans from private lenders unless you absolutely have to!
  3. Carefully review the terms of any loan you take out and make sure you understand them. Remember to shop around for the lowest interest rates and fees (you can do this even for federal loans for lenders affiliated with the FFEL program).

All the best,
Deborah Fox

photo: Oh No! by duduhp

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One Response to “Hundreds of Astrive Student Loan Checks Bounce”

  1. 1
    Surviving College Life » What’s the Difference Between Student Loan Types? - Survive College with tips about roommates, studying, and more! Says:

    […] Pay for College Blog just posted an article about how hundreds of students received bad loan checks from their private student loan company, Astrive. This mistake on Astrive’s part has meant […]

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