I do know that my brother and sister, who went on to pursue professional degrees, took out significant loans to fund their graduate degrees.  When I decided to go back to school, this potential debt load was an important consideration.  I chose a school that was well-respected but not as highly ranked as others that I was admitted to because I thought I could maximize my opportunities with a good credential and a much lower debt load.

In today’s environment, I’m watching students who never thought they would have to do this calculus seriously consider schools that are far less expensive than their top choices.  As student lenders tighten credit guidelines, the availability of funding has become a very real consideration.  In light of this situation, it strikes me as odd that some student advocates have come out against providing liquidity for the private student loan market.

As I probed further into the topic, I found publications such as the Sacramento Bee calling for a push for students to maximize their federal options first before applying for “risky and expensive” private loans.  While we wholeheartedly agree with this borrowing approach, we see it as a cautious “and” rather than an “either/or”.  All too often, students take out their student loans without understanding the implications, despite the entrance counseling.

Some schools are taking an innovative approach to their entrance counseling and providing broader financial literacy.  It’s important for students to understand that future effects of their present-day decisions.  Our products, Conductor and our new Student Loan Marketplace, provide transparency and guidance to students to support them in their decision making.  We believe it’s important to empower students to make the best decision for their particular financial situation.

I know that my sister and brother would not have been able to attend their top tier graduate schools without adequate access to financing.  It made a big difference for them.  The key for me is that they knew what they were getting into and were prepared for the consequences.  I’m just glad they had the option.