Changing the Conversation

July 31, 2007

Private or alternative loans comprise a growing share of student loans, despite being more costly than federal student loans. Students and parents are often unaware of the differences between private and federal loans, and many borrowers don’t know which they have until they enter repayment. Unfortunately, despite required informational sessions about federal loans, the majority...


What a difference the interest rate makes

July 13, 2007

It is easy for consumers to forget just how expensive a few percentage points of interest really is. I made this point on Tuesday in my presentation at the annual conference of the National Association of Student Financial Aid Administrators. Assume you have $10,000 in loans and the interest is deferred for four years of study, and then the loan is paid in equal installments...


Debt and Access for Latino Students

June 28, 2007

"It is like the white house on the top of the hill," a staff member I interviewed at a community college said to describe the way many Latino / Hispanic students and their families view financial aid. The idea of receiving a free scholarship or financial assistance that does not need to be repaid seems too good to be true. Consequently, sometimes students do not apply for the...