By Michelle Durham
PHILADELPHIA (CBS) – Interest rates for student loans are set to rise about one percent this fall — driven up by higher bond rates. It’s another knock to students who are graduating college with record-high debt. All this has college students making some tough decisions.
Temple University’s Associate Director Student Financial Services Kimberly Benns says this means students have to borrow smarter.
“Borrowing only what you need — tuition and fees for example. But, the smartphone, where you live, whether you live on campus, off campus or deciding to stay home with your parents and commute. These are all options that help offset the cost.”
Benns says the choice is yours: “Think about the way we borrow for a home or a car. We make our selections based on what we can afford understanding that the funds are not going to fall from the sky. So selecting colleges or universities that fit your budget and seeking scholarships, grants and other free money along with work study and then finally what we would like students to do is build a relationship with your aid administrator who can help you navigate the long process.”