<p>Here’s the thing: if you can get a better deal on a loan, go on ahead and do so. If you have a HELOC at 1-2% take it, and get some term life insurance. Also you are taking the risk that if your student teaches or does some program that takes him off the hook for some of the loan, it won’t happen, but all in all, if you have a lot better options in loans, take them. </p>
<p>The fact of the matter is that most people are not going to be able to borrow that kind of money for a UG degree. Not worth it to the banks. These days most of us cannot get an unsecured loan of any large amounts, and kids are certainly not going to get $30K+ in credit that they can defer till 6 months after graduation before starting to pay on it. Look at what’s out there and you will see what I mean. An 18 year old is going to need cosigners for even secured car loans/ So, yes, the loans are out there due to the government subsidization. And, yes, the lenders are making out, which is why they are lending out the money. Interest rates are not even a percent these days on money in the bank.</p>