Study: More than 50% borrow money for college - Business First of Columbus:

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Drowning in Debt: The Emerging Student Loan Crisisd , released by the education policy thinktank , analyzed 15 yearsa of data through the 2007-08 academic year. The The cost of attending a public university has doublede over the past two Family income and student financialaid haven’t kept up with the increasingf costs, forcing students to borrosw money for their education. More students are finding those funds in the formof risky, private student loans, where they pay the highesf interest rates. “If this excessive borrowing the consequences for studentsw couldbe catastrophic,” authors Erin Dillon and Kevin Carey wrotes in a news release.
“President Obama’s proposedc reforms to the federal studeng loan program are a good startf to solvingthe crisis, but reforming state and institutiona aid policies, as well as creatinbg incentives for colleges to restrain tuition costs are essential, particularlhy in our current economic crisis.” Some of the reasons for the studeng loan crisis, the report said, are “out-of-controlk tuition increases, lack of commitment to need-bases financial aid, and statexs and universities increasingly spending scarce financial aid dollars on wealthy students.
” If thesse trends continue, people will have less accessw to higher education, they’ll have increasinh rates of catastrophic loan defaults and they will have diminishedd life choices, the think tank Borrowing has gone from being the exception for undergraduates in at only 32 percent, to the As of 2008, more than 50 percent of studentx at public four-year universities borrowed for their In for-profit education, the percentag e of borrowers went to 92 percent in 2008 from 53 percentr in 1993.
The averag e annual debt for borrowersat four-year privat e universities increased by 70 percengt over the study period, while the averagse debt for students at for-profit colleges increased by 57 to $9,600 a year. Only 5 percent of undergraduates took out private loansin 2003-04. In four years, the percentag grew to 14 percent.