"With the prospect of loan forgiveness looming, student loan debt continues to be a lightning rod issue. This debt has ballooned to nearly $1.75 trillion in the U.S. That figure is spread across 43.4 million Americans for an average of $37,358 per borrower, according to a BestColleges analysis of student debt," Best Colleges reports.
..."BestColleges connected with five experts in the student loan and college affordability space to learn more about student loans, how much debt is excessive, and whether students should take out student loans to begin with. Here's what they want students to know.
Student Loans Are Flexible (Relatively Speaking)
Jill Desjean, Senior policy analyst, National Association of Student Financial Aid Administrators
In the world of loans, federal student loans offer some of the most manageable debt compared to debt like mortgages.
Desjean added that federal student loans also offer some of the best protections for borrowers.
"Federal loans offer much better borrower protections than private loans, for the most part."
Firstly, these loans are manageable from an application process. Unlike other loans, the federal government does not check credit history when offering these loans. That means people with no or poor credit history can still use these loans to fund their education, unless applying for a Parent PLUS loan.
There are, however, limits on how much each student can borrow each semester. While that amount is generally enough to afford the tuition of a community college, she said, it's unlikely students can sustain themselves solely on these loans if they attend a four-year institution."
NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.
Publication Date: 6/16/2022