The government should allow private loans to be consolidated and guaranteed through the federal government. The same model as with Direct Loans.
Why is this important?
Our current education system is too expensive and many young students must now use private loans to cover their tuition gap.
According to the pew report in 2010, 70% of total debt was owed by households headed by those under 45. The average national debt per student was $26,000 dollars in 2010. All trends point towards increased borrowing to keep pace with the rocketing cost of education.
Personally I owe over 50,000 dollars in private loans from my masters degree. Four of my loans have high variable interest rates and none of these loans can be consolidated for better rates or terms of repayment. Students are graduating into a dismal job market with overwhelming debt, and high variable interest rates.
It's time to give graduates a break and offer the same benefits provided by the federal government.
