private lenders

College students who think they are getting a federal loan have been finding out too late that they hold a private loan.

And private lenders often fail to detail loan costs and even deceptively present themselves as part of a school's financial aid office.

The difference can be extremely costly: 7% vs. 18.5% from private lenders.

The government has increased its support of the student loan market so much that there is a question of whether there is a role for private lenders at all.