Federal Student Loans
How well does the program actually work?
So what about federal student loans?
Most of the benefits from federal student loan programs accrue to colleges, not students attending them.
More money for loans is a good thing though, right?
Actually, an increase in subsidized loans to students typically triggers colleges to raise their sticker tuition price.
What does this mean for the students?
Some schools are discovering that there's a correlation between federal student loan programs and high default rates.
So how are schools reacting?
Schools are starting to just say "no" to student loans, no longer administering the program on behalf of their students.
Is there an alternative to federal student loans?
Private income share agreements (ISAs) are a viable option for students that are gaining traction. Because ISAs make students an investment rather than simply a "customer", college's have a greater incentive to ensure their students are developing applicable skills that can land them a job.
To learn more, click here and here.
To learn more, click here and here.