Private loans today make up 20% of all education loan money, when they constituted just 5% of student loans just a decade ago. And borrowers who do not finish their degrees are 10 times as likely to default on their loan and twice as likely to be unemployed.
These are just some of the facts from the preamble of Illinois 2010 S.B. 1698, which calls for the creation of the Task Force on Higher Education Private Student Loans. The task force is charged with investigating a number of issues related to private student loans and student private debt load. The questions the task force are investigating appear to be exactly those all states should be asking as they seek to balance postsecondary access, tuition costs in a down economy, and the student debt load of college graduates.