This time of year many families are trying to figure out how to pay for the cost of college. One of the most common options are loans but not all loans are created equal. The Federal Trade Commission has a new fact sheet out called “Student Loans: Avoiding Deceptive Offers“. This fact sheet reviews the two basic types of loans, federal loans and private loans, and discusses how to avoid a number of problems that may occur with private loans and with loan consolidation.
I always encourage families to consider federal loans before turning to the private loan market, but sometimes, there is a need for private loans. All families considering taking out a private loan, or doing a loan consolidation, should review this helpful fact sheet.