Another cautionary debt story

JustAMomOf4
Fri, 24 Oct 2008 05:28:19 +0000

UABound - I could not agree with you more.

For the record - my kids would not be at college without their loans. They all qualify for and must take out Subsidized Stafford Loans. This is part of how they are helping to pay for their education. I struggle enough trying to come up with the rest of their tuition, room and board.
The interest is not accumulating while they are in school and other than the 1% guarantee fee it is “free” money. There are maximums on what one can borrow: $3500 freshman year, $4500 sophomore year, $5500 junior and senior year.

I strongly suggest that folks stay away from private loans and unsubsidised Stafford Loans (unless you can pay the interest on the unSub Staffords) - especially the first two years in college.

Nothing rankles me more than to see a college “award” private loans. It is voodoo financial aid.
IMO - Loans are not necessarily bad - make sure they are the “right” loans though and be careful.