Saturday, December 5, 2009

College Students Increase Loans

Posted By: Pete Hill

In today’s world, in which most secure jobs require a upper level education, many people are taking out loans to be able to attend college.

Every year, millions of students and families must fill out the Fafsa form to apply for Pell grants, Stafford loans, Perkins loans, work-study programs and much state aid. But many are scared off by the form. Federal authorities estimate that 1.5 million students eligible for Pell grants did not apply.

And because the form is so complicated, a growing industry of paid consultants has sprung up to help families complete it. As a result, the form is being revised to remove questions and ease the process.

Borrowing has increased at many colleges and universities all over the country, but borrowing did not increase much for those earning bachelor’s degrees in public or private colleges, like Syracuse. At private four-year colleges, the median loan debt for bachelor’s degree recipients was $22,375 in 2007, an increase of five percent from $21,238 four years earlier.
The federal Department of Education says that almost all its loan forgiveness programs are safe. With this said it will allow students to feel more comfortable about taking out loans and not having to pay back a much higher amount later in life.

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