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News & Press: EFC in the News

The New York Times

Thursday, September 17, 2015  
Posted by: Barbara Reichart
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Are Private Loans for College a Good Thing?

September 13, 2015

To the Editor:

One of biggest contributors to high student debt is excessive borrowing.

Nonprofit and state-based student loan organizations, like those represented by the Education Finance Council, provide student loan services driven by a public-purpose mission to expand borrowers’ financial knowledge, prevent overborrowing and guide positive repayment behavior.

Prospective borrowers are encouraged to borrow only what they need to fund their education and to exhaust all their free and federal loan sources before borrowing private loans; appropriate borrowing is the key to preventing situations like those you featured.

In the last year, these organizations directly helped more than 600,000 families from Maine to California make smart borrowing decisions to pave the way for a successful postgraduate career. Students and families would be wise to take advantage of these free resources in their states.

DEBRA J. CHROMY, Ed.D.

President, Education Finance Council

Washington