Skyrocketing college tuition costs have made student loans an integral part of college financing for many students. Yet, most college students do not grasp the complexities of student loans. They simply sign up for classes and expect the loan money to pay for the cost of tuition. College students must thoroughly understand every element including the fine print. College students should learn eight critical facts about student loans.
1) Student Loans: a Fact of College Life
As of 2014, more than 20 million students were enrolled in the nation’s colleges and universities. Of the more than 20 million college students, 60% (12 million) borrowed money to cover the ever-growing costs of financing college educations. What was once considered a financing source of last resort, student loans have emerged as the most popular college financing option. Expect more student loan options to emerge in both the public and private sectors.