October 23, 2007

Private loans are a symptom, not the problem itself

Posted in Private Loans, Student Loan News at 8:54 AM by Joe From Boston


I’ve seen a lot of news articles recently blaming private loans for the debt burden of college students, for recent graduates inability to enter the housing market – basically for every financial evil that college graduates face.

Let’s look at this logically.

No one would borrow private loans if colleges didn’t cost so damned much!

That’s the REAL problem here.  Private loans are a band-aid for students to attend school- they’re a symptom of the larger problem that the price of higher education in this country is spiraling out of control!

The fault does not lie with the private lenders, it lies with the colleges.

Now, I think that private loans could be better regulated, and yes their interest rates are a bit outrageous if you have bad credit, but the only reason that private loan companies exist is that college costs are exorbitant.

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3 Comments »

  1. I didn’t get any loans for college, I paid my way as I went, although I went to a state school not an Ivy league. The reason why tops schools cost so much is because top professors command higher salaries and such schools have expensive equipment, labs, and such to maintain.

  2. Flenn said,

    Education is a must need for everyone. For having that education the basic thing is money. The private loans are a good choice but one has to think of the interest which they have to pay and period of installment. When all these things are considered this makes a little trouble


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