student loan marketing
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Consolidation frenzy grows
Alumni, students and their parents have been calling Suni a dozen times a day at the University of Missouri-Kansas City financial aid office, asking his advice on whether to consolidate government college loans before interest rates rise July 1.
College financial aid offices throughout the country are being inundated with inquiries about government loans.
Suni, UMKC financial aid coordinator, said the calls are being fueled by the marketing strategies of lenders encouraging borrowers to consolidate.
"Lenders are mailing post cards and doing banner pop-ups on Web sites and offering a variety of deals for students to potentially get some savings down the road," Suni said. "This can be described as a mad feeding frenzy, and midnight on June 30th is the witching hour."
On July 1, the interest rate for government loans will jump nearly 2 percentage points, except for those borrowers, including students with loans, who consolidate and lock in their current rate.
More student loan marketing info
Senate tax writers seek privacy protection
Consumer advocates worry that people who visit a tax preparer may be getting more than help with their tax returns. Taxpayers also could unknowingly or unthinkingly give away private information to companies marketing other products.
To head off that risk, some lawmakers are seeking to restrict how tax preparation companies can use the sensitive information entrusted to them by their customers. Such data may include marital status, home ownership or student loans.
"The marketing, data mining or other commercial uses of tax return information expose consumers to security risks, identity theft and intrusive marketing, not to mention a completely unwarranted invasion of their privacy," Consumers Union and three allied groups wrote in May to leaders of the Senate Finance Committee.