5 Ways To Reduce Student-Loan Debt
"In a recent column on how to keep student-loan debt under control, I made the point that we need to apply out-of-the-box, even radical ideas to tackle spiraling college costs and student-loan debt," Janet Bodnar writes for Kiplinger's. "Readers quickly sent me their feedback. Some comments were straightforward. One reader thought that the best advice in my column was that families need to realize the dangers of making a college choice based on emotion: 'Going to a $45,000-a-year school to become a teacher is a bad idea if you have to borrow.' ... Limit borrowing. One reader would put more responsibility on lenders rather than borrowers by making private student loans dischargeable in bankruptcy. 'As soon as lenders realize they might lose the principal on their loans after graduation, they will pull in their horns and make fewer loans, which will drastically reduce the amount of money borrowed and change the selection criteria students use to pick a college.' Meanwhile, the National Association of Student Financial Aid Administrators sent me its own recommendations, which include letting institutions set loan limits for certain categories of borrowers and making income-based repayment the automatic default for all borrowers."
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