You don’t need us to tell you that college isn’t cheap. Penn’s high-quality education comes with an equally high price tag. Even after often-generous financial aid packages are awarded, the University’s tuition poses a financial burden on many students and their families. For those with a need, the process of securing additional money and paying back loans can be stressful and complicated.
Efforts to make paying for college more hassle-free are always appreciated. The University’s switch from private lending to Direct Lending from the government starting this summer is one such initiative that will hopefully make students’ lives easier.
The move to Direct Lending will reduce fees by a small amount because the private lenders have been eliminated as middleman. Undergraduate and graduate student borrowers will also likely have quicker access to their funds as a result of the switch. Moreover, Direct Lending will make the loan process easier for Student Financial Services because they will not have to deal with the confusion of private lending companies entering and leaving the market.
Now more than ever, in these difficult economic times, students need all the help they can get to make college as affordable as possible. There are prospective students who may shy away from the University because the cost is high and the loan process is convoluted. The move to Direct Lending is a good effort toward making financial aid more stress-free, and the University should continue working to make paying for Penn as easy as possible.
