Don’t Panic over student loans!!

A bunch of recent articles (such as have raised alarm bells among families about student indebtedness and loan availability. In my ongoing service to diminish hysteria, here’s a little reality for you.

Public education is still a tremendous bargain, and debt loads are still pretty darn low. The vast majority of students in higher education conclude their four years with less debt for college than they owe on their cars, and the interest rates on the higher education loans are FAR better than their credit cards and car loans!

Despite that fact, I hear from students all the time who are scared by all the hype to take out college loans. I find it especially troubling when the same student is mounting credit card debt, or car debt, etc. Student loans are likely to still be a FAR better deal!

Of course, stories like the one above would also lead you to believe that money for student loans is harder to come by this year, but read the story carefully. Buried in the middle of all the fear you find the reality, that the change is likely to only be felt by students with bad credit histories at for-profit colleges with a bad history of students repaying their debts. In other words, if you go to a reasonably priced public institution and take out loans, even with a bad personal credit history, you’re unlikely to feel any difference in loan availability.

My advice: before you give up on your dream school, or drop out, or take on a crushing off campus work load unrelated to your chosen career, explore the loan options more fully. Your financial aid office will be glad to help, and I think you’ll be pleasantly surprised. Great details can be found at Be seeing you.


2 Responses

  1. another route for finding money to pay for college is scholarships. there are a lot more out there than many students think. On a website called FasWeb, you can sign up for free and have information sent to you for free on tons of scholarships.

  2. I agree it looks harder to get loans, but when you really read the story above and listen to the news it is not all that bad when you are seeking educational loans.
    Not so much has changed there. With a bad credit it is getting a little harder, but still there are planty of choices. Don’t get all hyped up and scared, instead start earlier your search and be confident, choose a good school and have a look on other options as well. Like scholarship, aid from relatives, family and state educatinal aids.

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