Wednesday, October 01, 2008

Are Private Student Loans Too Risky?

Apparently, not all student loans are created equal.

Increasingly popular, highly marketed private student loans now make up a very large part of educational debt taken on by parents and students across the country each year. Unfortunately, these private student loans may have serious drawbacks and carry additional risks not associated with federal student loans, reported the USA Today's Sandra Block in a recent article on the subject.

These days, it seems that college costs are putting the word "higher" in "higher education," and deep educational debt is fast becoming a real concern for many American families. Although it's a truism that a college education is the single best way to ensure prosperity in our culture, many graduates could find themselves under the thumb of a crushing educational debt burden unless they're able to quickly cash in on their expensive university educations and find gainful employment. Those who cannot may come to regret their decision to opt for many of the private student loans so common today, which, though plentiful and easy to obtain, are often much less affordable, flexible, and forgiving than standard federal loans.

The question of how best to finance the costs of college is of urgent importance to more and more people each year, and if you would like more information about the potential dangers of private loans, I highly recommend Ms. Block's article on the subject.
Click here to read the entire article.

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