Filling in the Research Gap

A report released today by the National Consumer Law Center is worth looking at if you follow student loan issues. The report examines the terms, including interest rates and fees, of 28 private student loans issued between 2001 and 2006. The growth in private student loans over the past few years has gotten a lot of attention, but what has been missing from the discussion is an accounting of the actual terms of these loans. Until now, most of that information has been anecdotal.

The report's title, "Paying the Price: The High Cost of Private Student Loans and the Dangers for Student Borrowers" makes its conclusions pretty clear. And it's worth keeping in mind that the National Consumer Law Center is a consumer advocacy group, so it approaches the topic from a consumer protection perspective. Even so, this is the first real look at the terms of these loans, and, much like the anecdotal evidence has indicated, it's a marketplace where students need to tread carefully.