I don’t know how long this program will last, since the Obama administration wants to end the FFEL program, but Sallie Mae has come up with an option that may help students graduate with less debt (and learn a little financial responsibility at the same time).
Sallie Mae’s website states:
With the Smart Option Student Loan, you’ll establish and build your credit by making interest-only payments while in school, and for 6 months after graduation. Making payments while in school reduces the total cost of your loan which could save you hundreds ? even thousands ? of dollars over the life of your loan.
Perhaps if students see their debt actually stacking up, it might encourage them to borrow more wisely, which would help shut off the spigot and fight the cost spiral in higher education.
