Megan Connors of Harford County, Md., says she got a great
education at Auburn University but a brutal lesson on private
student loans.
Federal aid wasn’t enough to cover four years at the school in
Alabama, so Connors made up the difference with private loans. Now,
four years after graduation and working as a prekindergarten
teacher — a job far afield from her major — she struggles to repay
about $101,000 in private loans.
“If I knew I would be in this much debt, I probably wouldn’t
have pursued a four-year degree,” said Connors, 30. Her parents,
who are retired, help with the loan payments.
Granted, Connors’ case is unusual. But it’s a dramatic example
of how some young adults have relied on private education loans to
fulfill a college dream, not realizing the long-term financial
consequences to themselves and the family members who co-sign.
It’s an issue that has long concerned student advocates — and
now Congress.
The Dodd-Frank law requires the Education Department and the new
Consumer Financial Protection Bureau to report on private education
loans by July. As part of that, the consumer bureau recently
announced it was seeking answers from students, schools and
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