Why do students borrow money to pay for college?
Borrowing is one way to finance student responsibilities. Students use savings, current income and borrowing to pay their assigned student responsibilities. If their parents are unable or unwilling pay the full amount of the expected parent contribution, some students use loans to substitute. Borrowing is here to stay. If the federal government shut down its student loan programs, private lenders would move into the market, and students would pay higher interest rates on their loans.
