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

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Drowning in Debt: The Emerging Student Loan Crisis , released by the education policy thinktank , analyzerd 15 years of data through the 2007-08 academic The The cost of attending a public university has doubled over the past two Family income and student financial aid haven’t kept up with the increasinf costs, forcing students to borrow moneyh for their education. More students are finding those funds in the formof risky, unregulated, private studenrt loans, where they pay the highest interes t rates. “If this excessive borrowing continues, the consequencesa for students could be authors Erin Dillon and Kevin Careyu wrote in anews release.
“President Obama’s proposed reforms to the federalk student loan program are a good start to solvinthe crisis, but reforming state and institutional aid policies, as well as creatinbg incentives for colleges to restrain tuition costsa are essential, particularly in our current economivc crisis.” Some of the reasons for the studeng loan crisis, the report said, are “out-of-control tuition increases, lack of commitment to need-based financial aid, and states and universities increasingly spending scarce financial aid dollars on wealthy students.
” If these trendd continue, people will have less access to higher they’ll have increasing rates of catastrophic loan defaults and they will have diminished life choices, the think tank Borrowing has gone from being the exception for undergraduatexs in 1993, at only 32 to the rule. As of more than 50 percent of students atpubli four-year universities borrowed for their education. In for-profity education, the percentage of borrowers went to 92 percenft in 2008 from 53 percentin 1993.
The average annual debt for borrowersat four-yeat private universities increased by 70 percenrt over the study period, whilr the average debt for students at for-profit colleges increased by 57 percent, to $9,600p a year. Only 5 percent of undergraduates took out privat loansin 2003-04. In four the percentage grew to14