The other day we talked about college students protecting their identity at school. As a parent, there are things you can do as well to protect your good credit and possibly protecting your identity at the same time.
The Education Department recently reported an increase in defaults within the first two years of repayment in the fall of 2009 of 7% to almost 9% for the two years ended in the fall of 2010.
College tuition is increasing at a rate double that of general inflation. In 2010 the annual tuition for a public four-year college was $16,000, which was up 6.1% from 2009. The cost of a private four-year college was up 4.3% from 2009 to 2010, coming in at a staggering $37,000.
Access to student loans has been the path, and the only path, to higher education for many students, escpecially those who want to attend prestigious private universities. In 2008, 60% of college students carried some form of student loan and low-interest student loans from the federal government have been a huge source for funding; however, with the upcoming deficit reduction, this could be an area that is cut.
Yes I know college is a lot more expensive today than it was back in the days of covered wagons, when I was attending The University of Virginia. However, in order to better understand the situation, let's first talk about how students get into debt in the first place; there is a fundamental phenomenon for the cause.
More and more students are going into debt for college, and it's killing them. An education is one of the greatest things you can have, for it is something that can never be taken away from you.
Parents are finding new ways to get their kids started off as a young adult without the burden of debt on their shoulders.