Student Loans Entice Borrowers More for Cash Than a Degree

March 3, 2014
Wall Street Journal 
student loan news
Some Americans caught in the weak job market are lining up for federal student aid in order to take out low-cost loans, sometimes with little intention of getting a degree.

Borrowing thousands in low-rate student loans—which cover tuition, textbooks and a vague category known as living expenses, a figure determined by each individual school—can be easier than getting a bank loan. The government performs no credit checks for most student loans.

College officials and federal watchdogs cannot say exactly how much of the nation's $1.1 trillion in student-loan debt has gone to living expenses, but data and government reports indicate the phenomenon is real. The Education Department's inspector general warned last month that the rise of online education has led more students to borrow excessively for personal expenses.









Abstract News © Copyright 2008-2013 INFORMATION, INC.
Powered by Information, Inc.

Stay Updated

Join the fight against predatory lending. Enter your e-mail to sign up for breaking news, action alerts, and CRL's original research.

   Please leave this field empty
  

Help Us End Predatory Lending

Predatory lending destroys family wealth, and preys on our most vulnerable communities. You can help us end abusive lending practices by donating to CRL, or by sharing our work with others.



`