"If you’re heading to college or starting to think about where you’d like to apply, you’re probably considering options for funding your education. If you need to borrow money to pursue your dreams, you are far from alone," The Associated Press reports.

..."According to the Federal Reserve, 30% of all U.S. adults said they incurred at least some debt for their education. Borrowers owe a collective $1.77 trillion in student loan debt, including federal and private loans.

'Borrowing is almost at the point where it’s a requirement,' said Dana Kelly, from the National Association of Student Financial Aid Administrators.

...Federal student loans are backed by the government and private loans come from banks, credit unions or other private institutions.

In general, federal student loans offer lower interest rates and more opportunities for affordable repayment plans, such as the Public Service Forgiveness Plan or the various income-driven repayment plans.

Kelly recommends that students try to only use federal student loans, though there are borrowing limits.

'More than likely, private loans are going to cost a student more over the life of the loan,' Kelly said."

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

Publication Date: 8/15/2023