"By this point, anyone who hasn't gotten the message that college students' escalating use of private (or 'alternative') loans are a source of concern hasn't been paying attention to national discussions about financial aid. The College Board and the National Association of Student Financial Aid Administrators, are among the groups that have issued reports documenting student borrowers' growing use on the loans and suggesting policy changes that might diminish that reliance, and some colleges have gone out of their way to alter their students' behavior. But for all the talk of potential overdependence on private loans as a public policy concern, which has also been a theme of Democrats in Congress, relatively little has been written or said about exactly why the loans can become a problem for students, beyond the relatively obvious reason: their higher cost," Inside Higher Ed reports. "The National Consumer Law Center sought to close that gap in a report released Monday. The title of the report, 'Paying the Price: The High Cost of Private Student Loans and the Dangers for Student Borrowers,' makes its perspective clear; the consumer advocacy group and its officials have paid increasing attention in recent years to private student loans as a potential hazard for vulnerable consumers and argued that governments should regulate private student loans as rigorously as they do other sorts of consumer loans."

You can read the complete February 4, 2008 Inside Higher Ed article on-line.

Additional Media Coverage

• Are Private Student Loans the Next Subprime Mortgages? (The Chronicle of Higher Education)

Posting of "Financial Aid in the News" does not imply endorsement or support by NASFAA. If you attempt to access an article and receive a "not found" message, it is likely that the article has been removed from the site. Posted 03/04/08 to www.NASFAA.org. Please submit Web Site questions or comments to Web@NASFAA.org.