Must Read: Article on Student Loan Debt

Paying for College
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<p>From the SF Chron,<br>
<a href=“http://sfgate.com/cgi-bin/article.cgi?f=/c/a/2006/10/25/BIGLOANS.TMP[/url]”>http://sfgate.com/cgi-bin/article.cgi?f=/c/a/2006/10/25/BIGLOANS.TMP&lt;/a&gt;

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<p>I think any student considering private loans on top of subsidized loans to finance their college education should read this article. I know this issue of borrowing comes up every spring, when students get into their desired colleges but are gapped on financial aid.</p>

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<p>18%???</p>

<p>What on earth type of loan did that guy take out? I thought my 6.9% was bad. Yeesh.</p>

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<p>It was a private loan with a variable interest rate. Though the article didn’t say so, it’s also possible that the loan allowed rate increases if payments were made on time – this is common with credit cards.</p>

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<p>Ugh. This makes me glad that I read the fine print before signing. Very glad.</p>

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<p>Thanks calmom! This article should be a must read for all high school seniors.</p>

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<p>And for their parents. Many of them figure that 18 year olds are now adults so they can take out loans and pay for that college. It should be taken into account that most 18 year olds are not going to be that wise about financial matters. Even the most mature often end up getting into some financial trouble with overspending and credit cards. Add a huge college debt with unfavorable terms into the mix, and you are looking at financial ruin before the kid is even on the roll.</p>