Sandy Baum Quotations

Where the average debt levels are really increasing are for children of more-affluent families. Children of affluent families are now almost as likely to borrow as children of less-affluent families.

People have to be more cautious about their borrowing levels. You should never borrow the maximum amount you can afford. You should always give yourself some leeway.

Most schools don't have enough grant dollars to meet the full needs of their students, so they have to decided whom to give it to. There is merit component to need-based aid. There also are schools that award merit-based aid but only to students with need.

The question for parents is: Is it better to take out a PLUS loan or is it better to take out a home equity loan? They need to look at all their options.

What it means is that they'll have to borrow a little more money and repay it at a higher interest rate.

Financial aid is the fastest-growing component of institutional budgets.

The published price bears so little relationship to the price you're going to pay. The schools that have the highest prices often have the most financial aid available.

The interest on home equity loans is tax deductible. There are some people who can deduct interest on education loans, but not everyone.

You don't have to be poor to get need-based aid at an expensive private college.

The increasing use of these private loans is a clear concern.

The maximum contribution remains at $4,000. Therefore the Pell Grant covers a smaller and smaller portion of students' total tuition costs.