December 5th, 2011

Some students are leaving college with huge private loans

By Eileen Ambrose
Baltimore Sun

So why do students turn to private loans?

Sometimes they don’t understand the difference between the two types of loans, experts say, or families with strong credit are able to get a lower interest rate with a private loan.

“A lot of it is advertising,” says Mark Kantrowitz, publisher of FinAid.org, an online provider of aid information.

For instance, if you search for student loans on Google, all sorts of ads pop up promising “fast” or “no co-signer” private loans.

“The first thing a student hears about,” Kantrowitz says, “is going to be the private loans.”

Read more: http://bsun.md/sV0SRL

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