Private Loans For College? It May Backfire (The Columbus Dispatch)

Abstract: “Private-loan advertisements flood college students’ mailboxes and flash on their computer screens. Statistics are hard to nail down, but the College Board estimates that borrowing through private loans increased 30 percent from 2004 to ‘05 for college students,” reports The Columbus Dispatch. “Justin Draeger, a spokesman for the National Association of Student Financial Aid Administrators in Washington, D.C. tells students to borrow as much as they can through federally backed loans before considering private loans. Draeger said private loans are a resource that should be used sparingly and after a lot of research. Chuck Knepfle, director of financial aid at Miami University, advises students to avoid loans that come directly from private lenders. If students need private loans, he said, they should take them out through their school.”

The complete September 6, 2007 Columbus Dispatch article is available on-line.