Scholarship News

Study Shows Substantial Increase in Private Student Borrowing


April 23, 2009
by Scholarships.com Staff
Analyses of the data published last week by the National Center for Education Statistics are already starting to emerge.  The Project on Student Debt has announced that a significantly larger portion of students borrowed private loans in the 2007-2008 academic year than in 2003-2004, according to the NCES survey.

Analyses of the data published last week by the National Center for Education Statistics are already starting to emerge.  The Project on Student Debt has announced that a significantly larger portion of students borrowed private loans in the 2007-2008 academic year than in 2003-2004, according to the NCES survey.

Private loan borrowing increased by 9 percentage points, with 14 percent of students now relying on private loans, as opposed to 5 percent in 2003-2004.  Not surprisingly, more expensive schools saw the biggest increase in private student loans.  At for-profit colleges, the percentage of students borrowing private loans increased from 14 percent to 43 percent, while private non-profit colleges also saw a substantial increase.  Overall, 32 percent of students at schools charging more than $10,000 per year in tuition wound up borrowing private loans in 2007-2008.

While the credit crunch may slow the rate of private borrowing in the near future, these student loans still are regarded as the best or only option by some students.  According to the Project on Student Debt's analysis, 26 percent of private loan borrowers did not take out any Stafford Loans first, and 14 percent did not even complete the FAFSA.

Private loans generally carry the highest interest rates and least flexible repayment terms out of all student loans and most experts encourage students to avoid them if possible.  Explore other options for financial aid first, especially grants and scholarships.  You will also want to consider your potential debt loand when choosing a college.  Since students at more expensive schools are more likely to have to borrow private loans, students with limited financial resources should think carefully about the relative merits of a private college as opposed to a state college or community college before committing themselves to private loan debt.

College is expensive, Scholarships.com is completely free. Pay for your college education with as much free college scholarship money as possible. By applying to all the awards you qualify for, you can be sure to not miss a single opportunity in paying for your college expenses - including tuition, fees, room and board. Get matched to college scholarships instantly and start applying today by conducting a free college scholarship search at Scholarships.com.

ADVERTISEMENT

Discuss

Share your thoughts and perhaps thousands of students will benefit from your unique insight on the subject!



If you can read this, don't touch the following fields


 
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
A great scholarship opportunity for students enrolling at Historically Black Colleges and Universities (HBCUs) has extended through the end of Black History Month. The Future of Stem Scholars Initiative (FOSSI) will award 150 scholarships worth $40,000 over four years as well as provide mentoring and internship opportunities to select winners. The extended deadline for this scholarship is March 1st.

Big STEM Scholarship Opportunity for HBCU Students

February 18, 2021 10:51 AM
by Izzy Hall
A great scholarship opportunity for students enrolling at Historically Black Colleges and Universities (HBCUs) has extended through the end of Black History Month. The Future of Stem Scholars
When you create your free scholarship search profile on Scholarships.com, you’ll want to include information such as your GPA, the academic majors you’re interested in and the colleges and universities that are on your list. But did you know that what you do outside of the classroom can help you qualify for scholarships, too? Extracurricular activities of all kinds can tie into scholarship opportunities.

Extracurricular Activities Can Win You Scholarships

February 16, 2021 4:26 PM
by Izzy Hall
When you create your free scholarship search profile on Scholarships.com, you’ll want to include information such as your GPA, the academic majors you’re interested in and the colleges and
Two TikTok Stars – Josh Richards and Griffin Johnson – are teaming up with sports social media app SporstHi to create new scholarships for underserved students. Their combined donation of $20,000 will fund four scholarships for high school athletes.

TikTok Stars Create Scholarships for High School Athletes

February 11, 2021 1:36 PM
by Izzy Hall
Two TikTok Stars – Josh Richards and Griffin Johnson – are teaming up with sports social media app SporstHi to create new scholarships for underserved students. Their combined donation of $20,000
The first week in February is known as National School Counseling Week. School counselors are an invaluable resource during your high school education and beyond. School counselors can help students discover colleges, find scholarships and offer advice on all parts of the college admissions process. They want to set you up for success in your career as a college student.

Celebrating National School Counseling Week

February 2, 2021 3:51 PM
by Izzy Hall
The first week in February is known as National School Counseling Week. School counselors are an invaluable resource during your high school education and beyond. School counselors can help students
COVID-19 vaccines are in the process of being distributed across the United States. There’s much to coordinate, between delivering vaccine dosages, scheduling vaccination appointments and actually administering the vaccine. In the state of Wisconsin, college nursing students are volunteering to help get the vaccine out.

College Students Help Administer COVID Vaccines

January 26, 2021 2:15 PM
by Izzy Hall
COVID-19 vaccines are in the process of being distributed across the United States. There’s much to coordinate, between delivering vaccine dosages, scheduling vaccination appointments and actually
There are a lot of scholarships out there, some more conventional than others. Last time, we discussed a scholarship for students interested in becoming part of the chicken industry, but even that scholarship is far from the weirdest. There are some scholarships out there that have unusual criteria, to say the least. It may be based on something totally out of your control, like your height or last name. It may be awarded on how much you like a card game, or to whomever comes up with the most creative way to use a household product. It may even be for students interested in… potatoes? No joke, these five scholarships are some of the weirder ones on our site. Are you weird enough to apply?

Scholarships.com's Weird Scholarships Part Two

January 21, 2021 3:05 PM
by Izzy Hall
There are a lot of scholarships out there, some more conventional than others. Last time, we discussed a scholarship for students interested in becoming part of the chicken industry, but even that