BERKELEY, CALIF. (AP) - A study finds the number of college students taking out private student loans has risen sharply in recent years.
The report released Tuesday by the Berkeley, Calif.-based Project on Student Debt found that the percentage of all undergraduates who took private loans rose from 5 percent in 2003-04 to 14 percent in 2007-08.
At for-profit colleges and universities, the percentage of students taking out private loans jumped from 13 percent in 2003-04 to 42 percent in 2007-2008.
Lauren Asher, acting president of the Institute for College Access and Success, which runs the debt project, says the trend is worrisome because private loans are typically more expensive to pay back than federal student loans.
Please read our comment policy before commenting.