Drowning in Debt: The Emerging Student Loan Crisis
Higher education has never been more expensive. The price of attending a public university doubled, after inflation, over the last two decades, and family income and student financial aid haven’t kept pace.1 As a result, students have no choice but to borrow, and more college students are borrowing more money than ever before.
But a new analysis of federal financial aid records reveals more than just surging debt levels. Students are taking on more of the riskiest debt: unregulated private student loans. Here, students have the least protection and pay the highest rates. For-profit colleges are leading the way in this trend, and minority college students appear to be borrowing a disproportionate share. If this continues, the consequences will be severe: reduced access to higher education, diminished life choices, and increasing rates of catastrophic loan default.
Source: Education Sector July 9 2009
No comments:
Post a Comment