College - U. Got It?

An Auction for Your Loans?!

May 22nd, 2008

I always think to myself that by the time I get married, have kids, and send them off to college, the price of tuition will really be astronomical. As the cost of higher education continually rises (and the average private, four-year university tuition sans room and board is already $23,712 according to the CollegeBoard), what will tuition costs be like in a few years or even next year for that matter? The cost from last year has already risen 6.3 percent so where are we headed?!?!

TuitionBids.com aims to control this problem by helping students with affordable loans. Loans are important because they help you pay for school, but you must be aware that these need to be repaid over a period of time. So picking the right loan is crucial to your post-college debt management.

TuitionBids.com was founded in 2007 to “reform the higher educational lending industry,” according to their site. The site’s co-founder and CEO, Keith Alliotts, used to work with credit reports and always saw student loans on their credit. “What bothered me was that it became common practice for me to see this debt on people’s credit well into their 30s and 40s,” he says. “This is when I decided to do something about it.”

The site provides students with loan options by having lenders “bid” on the best loan for the student. TuitionBids.com will take the student through a step-by-step process to help them understand what loans will be best for them. From there students can start the process by clicking on the “Let the Bidding Begin” button. It is at this point where the student will fill out a detailed application.

“When the application is complete, TuitionBids.com does the rest,” says Alliotts. “The borrower then has the choice of up to six lenders and can decide which they would like to speak to.”

In essence, TuitionBids.com tries to narrow down the loan choices that will get you started (and continued) on your college career. And it’s easy to find any old loan, but TuitionBids.com aims to secure the right loan especially for you. “It is extremely important for all students to make sure they get the right loan because the average student holds onto their loan for approximately 19 years,” says Alliotts. “This debt becomes tremendously burdensome for the student and in a lot of cases delays their ability to purchase a home, car, etc.”

Once the right loan becomes available, a load is certainly lifted off a student (and parent’s) shoulders. It is then that the student can go on with the educational process and apply themselves. Alliotts offers up his advice: “Students need to get educated on this process so that they can make a more informed decision when it comes to borrowing money for school.”

With the escalating costs of education, we could use help somewhere. So check out TuitionBids.com and let them alleviate some of your stress. And if you haven’t quite chosen your school yet, let us help you conduct your search now!

-Amanda Fornecker

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Entry Filed under: Budgeting, General