Student Financial Aid News

From NASFAA:

“High school seniors, thrilled at receiving fat envelopes from the colleges of their choice last month, must now figure out how to pay for the privilege of attending these institutions. For many, this will mean a journey into private student loan land, where financial fog and fine print reign,” The New York Times reports. “At around $20 billion, the private student loan market is less than one-third the size of various federal lending programs. But students may have to rely more heavily than usual on banks and other private lenders this year because two alternative sources of tuition funding – the 529 plans and home equity balances – have been slammed by declining stock market and property values. … As with all borrowing, making the right decision on a student loan is paramount. But lenders make this harder than it should be.”

Commentary

Not all student loan companies set out to make things more difficult for students, but the original article is well worth a read to discover differing lending practices of student loan companies – and what you should be on the lookout for, especially with private student loans.

The best advice is always worth repeating – borrow only what you need to borrow, and focus your time and efforts on scholarships first. A loan promissory note may be fast and easy to sign, but that convenience comes at a much higher price than a scholarship.

Scholarship Update

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