College loans are an investment for the future
By Joshua Marks, Scarsdale, NY
Published on Friday, March 30, 2007
To the Editor:
I applaud the op-ed on student loans ("Owing an Arm, a Leg and a Future," March 29) for its compelling arguments regarding the seriousness of the debt burdens many college graduates face upon receiving that mighty diploma, and the need for increased transparency to assure the best ethical compliance. A couple of assertions in the last two paragraphs about the loans themselves should be clarified for accuracy.
Current rates for student loans run around six percent or so, give or take a percent depending on the market. This is comparable to mortgage rates. You have a choice in how large of a house you buy, just as you have a choice of which college you attend. Some may view Dartmouth as a decent investment, worthy of a loan and all the attendant responsibilities therein. Others may not opt for such a burden.
It is all about choices and the related consequences that come with those choices. Eliminating loan programs will not help offer more options for financing a Dartmouth education; it just transfers the burden of finding those loans to each student and family.
It is a little extreme to assert that there is gross "profiteering" to be had in student loans. Profiteering on interest is much more appropriate for the rates credit cards charge for carrying balances.
There is a principle for most financial aid programs which recognizes that every student must pay something. This stems from the idea that if you get it for free, you tend to treat it pretty poorly.
Top-notch private college education is a privilege, not a right, and a sacrifice. I salute any and every student who has recognized this and taken on the responsibility of funding such a privilege for him or herself. It is a serious commitment, but the rewards from that investment will last a lifetime.