The Fine Print on Student Loans

With the heavy debate over loans in class and for our group project, student loans top the charts of discussion. Loans, as a tool of public action, are something you must pay back or it defaults on the government. However, the WSJ clearly demonstrates the difference between student loans and mortgage loans. Finance experts see "good debt" as something that strengthens your financial position over time. However, good does not always mean easy. With student loans, if you are unable to pay you must be able to prove you cannot provide the minimal standard of living and you have provided a good faith effort to repay the loans. Student loans are considered good because of the low interest rates and flexible payment schedules; but they are not as easy as having a mortgage loan and just being able to hand the keys over when running into financial trouble.

http://blogs.wsj.com/hire-education/2010/10/15/the-fine-print-on-student-loans/

Michelle Watkins