Student loan myths that scare students away from college

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  • Call Me V Salt Lake City, UT
    Sept. 18, 2012 2:37 p.m.

    Student loan debt is the next bubble to burst. While I agree that education pays, there are several concerns regarding student loans that this article doesn't touch.

    Don't EVER, EVER touch *private* student loans. EVER. With the bankruptcy laws the way they are, if you ever run into difficulty (unemployment, low-wage job) and can't pay on the loan for any reason, they WON'T work with you, there is very little (if any) help available. The loan will default. They will suggest such helpful things as "borrow the money from friends." The private lenders have no incentive to work with students on negotiating fairer payment terms, etc., because they know the student cannot discharge the loan (we can thank George W. for that one).

    Provided one borrows responsibly, *federal* student loans are OK (can't say that I fully endorse them either, but they are much better than private loans). They have income-based repayment plans available, deferment in the event of unemployment, etc.