The Benefits Of Taking Out Loans For College
A New Look At The Lasting Consequences Of Student Debt
One of the ways schools have tried to help students cut down on their debt is to stop packaging federal loans with scholarships and grants in financial aid award letters. It could be the case that, even if a student were eligible for a loan, the award letter would show zero loan dollars. About half of community colleges are now doing this.
«It’s part of the narrative of the student debt crisis,» says Lesley Turner, an assistant professor of economics at the University of Maryland. «Avoid borrowing unless it’s absolutely necessary.»
Turner, along with Benjamin Marx at the University of Illinois, set out to study this: What impact does not packaging loans have on whether students borrow? And for students who were offered loans in their letters and took them did that influence how they did in school? Read more