Private College LoansI have discussed before the issue of taking out private loans to pay for college. Just to refresh, private loans are those that do not come from the federal or state government. They typically are not as favorable to the student as government based loans.

There is a new report out today from the Project on Student Debt, an organization that helps monitor student borrowing for college. This report, entitled “Private Loans:Facts and Trends“, reveals that most students who take out private loans to pay for college have not yet exhausted federal loans available to them. Moreover, the study shows that the majority of those taking out private loans are attending lower priced colleges.

There is nothing inherently wrong with taking out a loan for pay for some of your college expenses. But please, before doing so, make sure you understand the different types of loans to get the best deal for you. And almost always, the best deal will be to use federal or state loans before using any private loans.

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