orygunduck:

But if this continues for any period of time, I suspect there's going to be few private student loans available, with increased reliance on Stafford, Perkins and Plus loans

I think this is a good thing for students in general.  Too many of them get talked into mortgaging their lives to go to an expensive school when there is a perfectly fine state university they could attend for far less money.

If you are mortgaging your life to go to Harvard, fine, but I see kids taking on huge loans to go to some private, liberal arts college no one has heard of when they would get just as good of an education at a state school and be much less in debt when they got out.  Some private liberal arts college no one has heard of charging $30k a year in tuition won't get the kid a better job, won't give him/her a better education than a state school.

I think some of these schools may have to go out of business if private loans dry up, which is a good thing IMO.

K.Callie:

Your hypothesis is happening. Antioch College (I believe in Ohio) has announced it is going out of business. Antioch was fairly well-known at one time but declining enrollment and small endowment is doing it in.

All colleges have been increasing tuition far faster than inflation. I believe the ready availability of college loans has contributed to this trend.

Sam

snray:

K.Callie:

Your hypothesis is happening. Antioch College (I believe in Ohio) has announced it is going out of business. Antioch was fairly well-known at one time but declining enrollment and small endowment is doing it in.

All colleges have been increasing tuition far faster than inflation. I believe the ready availability of college loans has contributed to this trend.

Sam

I so agree with you that federal loans are what keep these small colleges in business.  Kids aren't well served by going far into debt to go to a school like that.  If mommy and daddy have money and can pay for it all, then fine.  But to finance an education from a school like that with loans is not a smart move.

Well considering

> My Last Neice graduated and most of her classes where tought by Studen Teachers and the " Tenure Porfessor was never there... Probably out playing Indiana Jones

> She paid enough to own a KFC Franchise

> she has $30k in Student Loans now

> And has gotten Married  to  a guy she dated in college and is expecting her first Child.. and going to be a stay-at-Home /Soccer mom...

> Her Husband ( God Bless Him) paid off her Student Loan..he helps run Daddy's Business making over $150k yr now..and many other Benefits..

Mission Accomplished for the Parents....LOL

her 4 yr older sister did the same thing..has 3 kids now and living in the Rich N. Suburbs of Chicago...

and her Older Brother? Is a  Salesman for AMD, making his $100+ k yr after Grad. and paid off his Student Loans..and Buko Stock Options and Benies...( Mercedes SUV, etc)

All came from Blue Collar parents ( My Brother is an Electrician)  and she is a RN..

So, I guess it's just what you put into it , that counts if it's worth it or not..