Is MyRichUncle on the verge of bankruptcy
A popular site for student loans, the cleverly named MyRichUncle.com, has slammed the brakes on its student lending activities.
Here is what it says on their website:
Thank you for your interest in MyRichUncle. At this time, we have paused our private student loan program. Due to continued disruptions in the capital markets, combined with the continued demand we have experienced this year, we are reaching funding capacity limits.
As a result, we are unable to receive new applications at this time. We regret not being able to serve you, but hope to in the near future. We are working to try to obtain funds that would enable us to continue to accept new customers.
Is this going to be the next company in line that closes its doors due to the trickle-down-domino effect from the sub-prime meltdown-real estate bubble-banking failure-foreclosure boom-economic doom-financial train wreck? Does this mean that the sky is falling? Who will be next? And how will it affect your college bound student?
Well, for clients of AZ College Planning & J.D. “The College Guy!” this doesn't change much since we've always strived to reduce or even flat-out eliminate the dependence on student loans. There are plenty of options other than high-fee, high-rate student loans like some of the products offered by My Rich Uncle.
Where are parents and students to turn?
The first step is to know what your EFC (Expected Family Contribution) is. Next, apply strategies to drastically lower your EFC so that you can qualify for more aid. Finally find Colleges that meet 100% of your need. If you know your EFC and the school meets 100% of your need your going in the right direction.
Every family situation is different. Read more of the articles I have on this blog, and attend one of my free workshops. Click the button on the Right - Free Workshop RSVP to get your spot now. Get solid advice now.
