What is TALF and How Will It Affect Student Loans?
Trouble getting money for college? Ready to apply online for student loans again? TALF is here, and it should help. The Term Asset-Backed Securities Loan Facility, a new program from the Federal Reserve, provides a sizable chunk of money for new loans. What kind of loans? See below. Tight Money The economic crunch has tightened money and lending all over the place. The trouble banks have had with their assets has left everyone wondering if the banks could still lend money. The Federal Reserve stepped in and created the TALF, a fund of $200 billion to use for new consumer loans. This can be expanded to $1 trillion, by the way. The idea here is to loosen up the lending and get people spending again, like on college tuition. What Loans Qualify I read the TALF FAQ at federalreserve.gov, and frankly, it’s boring. The point is that the Fed will provide banks and other lending institution with cash to lend. The have rules, of course, and one rule is that the money has to go to consumer spendi
