Student lending industry changes as college costs rise (Lincoln Journal Star)

Abstract:

“The evolution has happened, not surprisingly, right along with the rise of college costs. The student lending industry has become more important than ever for families financing college educations,” reports the Lincoln Journal Star. “Lending these days goes beyond the federal program, said Justin Draeger, a spokesman with the National Association of Student Financial Aid Administrators. The take-off of private loans, sometimes called alternative loans, is arguably one of the biggest changes within the industry in recent years, he said.

Private loans are growing faster than any type of student aid or resource, driven by rising educational costs and students’ inability to survive on federal loans alone, Draeger said. While the national association Draeger represents cheers efforts to impose greater transparency within the industry, there is another solution he sees: Increase federal aid and keep students within federal loan limits. Decrease dependence on private loans.

The complete Lincoln Journal Star article is available online.