State Senator Toby Ann Stavisky announced the launch of the New York State Higher Education Services Corporation’s (HESC) Student Loan Marketplace site to help college students comparatively shop for private loans.
Stavisky said that, although the cost of public higher education in New York is under $5,000 a year, “for some it’s a lot of money, and it’s for those students that we have this loan program.”
The site was designed to simplify the quest to find the right loan package to finance undergraduate education at public or private institutions. According to Stavisky, students can log onto the site at www.HESCMarketplace.org and compare various loan options from multiple lenders, based on the borrower’s credit profile after a credit check.
After submitting a personal information form, students may immediately view and sort a list of pre-approved detailed loan terms and pricing. The site helps users compare three products at a time and is only available to New York State residents.
Jorge Rodriguez, associate vice president for financial services at St. John’s University, said he is planning to encourage students to use the site.
The advantage of the site, Rodriguez said, is the “ability to see everything at once – the interest rates and the long term costs” so students can pick the loan that fits them.
“It’s a one-stop shop,” he said. “Students can see right up front what they’ll be charged.”
For students, Rodriguez said it is difficult to understand and know how to compare one private lender to the next when considering variables such as rates, fees and terms.
Discover and PNC are national lenders already participating in HESC Marketplace, offering five different private student loan options. The State Employees Federal Credit Union has also committed to join the HESC Marketplace and will be online in the near future. The New York State sponsored NYHELPS student loan program will also be available for the spring 2010 semester.
When asked whether he felt more lenders would participate, Rodriguez said, “Personally I do. If they don’t, students aren’t even going to bother going through to them. Why should students go to another lender when they can see them all at one place?”
The HESC Marketplace is the first of its kind to offer comparison services to help students and families make informed decisions, rather than going for advertised offers.
The site also features a learning center that provides information on procedures and good borrowing practices as well as tools to help estimate and budget college costs. According to Stavisky, before students can complete a loan application, there is also a financial literacy program that counsels and informs students about financial responsibilities.
“The counseling service is so students don’t get in over their heads, that they understand the meaning of borrowing money,” she said.
In order to access the service, students must have a PIN to log in. The site is up, and Stavisky said she hopes it can be used by students for as soon as the fall semester.
“Students are already struggling enough with the rising costs of their education,” Stavisky said. “It is important that we look out for them, take away some of the tediousness of the process, and help them get the quality loans they need to succeed.”
