Focus on Financial Aid – Private Student Loans

There’s been a lot of controversy recently about private student loans and their role in the financial aid process. Charlie Miller’s Commission on the Future of HIgher Education recommende scrapping federal student loans like the Stafford Loan in favor of private student loans. The Project on Student Debt says he’s headed 180 degrees in the wrong direction. In today’s show, I talk about:
+ What a private student loan is
+ Where to get one
+ When to get one
+ When NOT to get one
The short version: private student loans are ideal for bridging the gap between what aid you’ve received and what’s left to pay for. They’re not a good first resort simply because their rates are higher than federal student loans at the moment, and certainly they’re much less appealing than scholarships and grants.
Private student loans come into play if you don’t qualify for federal financial aid, or the aid you get isn’t enough. Line up as many scholarships as you can, get as much grant aid as you can via the FAFSA, get your federal loans, and then get private loans.
Check it out at:
The Financial Aid Podcast Web Site
If you have iTunes, visit:
FinancialAidPodcast.com/itunes
As always, please contact me with any feedback, either here, on the show, or on the phone.