Especially once you received your financial aid award. Financial Aid philosophy is to award scholarships/grants first, followed by work study, then loans, as a last resort.
Counseling students against excessive borrowing is an integral function of any financial aid office. There have been countless times when I sat with a student who had requested a loan or loan increase that I felt was not necessary to: 1) determine why the student felt the need to request a loan or loan increase, 2) explain his/her options and 3) discuss future education plans, such as grad school (grad students rely almost exclusively on loans), and how this request will impact those plans. Loan entrance and exist counseling is required at all colleges. So FAA’s are not pushing loans to drive up student debt, quite the contrary. In fact their Colleges’ ability to participate in the FFELP loan program is tied the annual Cohort Default Rate for Student loans. As far as educational loans are concerned, FAAs always recommend that students first apply for Stafford and PLUS loans due to their lower interest rates as compared to personal loans or private educational loans. As the financial industry seized up in the last two years, lenders of private student loans have tightened the credit requirements and increased the interest rates. Fewer students and parents are eligible for these loans. » Read more: Inside the Mind of the Financial Aid Administrator
