Richard Leslie, a journalism student at Purchase College, sent us this report and picture from Monday night’s student-loan forum at the Westchester County Center in White Plains:

Attorney General Andrew M. Cuomo and Westchester County Executive Andy Spano held a public forum at the Westchester County Center Monday to address concerns and options of paying for college, particularly through the use of student loans.

With the high cost of college and the tightening of the credit market, financing a college education is becoming more and more difficult for the average family,” Spano said. “In this climate, it’s particularly important for students and their parents to be well informed on the choices available to them.”

Cuomo, the keynote speaker, was responsible for an investigation of the $85 billion per year loan industry. The investigation led to key changes, providing new rights and protections for students and their parents.

“My office’s nationwide investigation has exposed widespread conflicts of interest in the student loan industry and has led to legislation that now protects New Yorkers from improper and corrupt practices,” Cuomo said. Still, he cautioned potential borrowers. “The law is only good if you know the law,” he said.

Cuomo introduced the five-person discussion panel which included: Benjamin Lawsky, deputy counselor and special assistant to the attorney general; Heather McDonnell, director of financial aid for Sarah Lawrence College; Chuck Bell, programs director, Consumers Union; Gary S Brown, director of Westchester County Department of Consumer Protection; and Sabrina Lerman, financial aid counselor for Westchester Community College.

The members took turns explaining recent developments in the student loan environment and made recommendations to the audience. One such recommendation, given by McDonnell, was to take out student loans, as needed, on a year by year basis instead of a single loan to cover the entire lifetime of the student.

Left to right: Heather McDonnell, Director of Financial Aid at Sarah Lawrence College;
Sabrina Lerman, Financial Aid Counselor at Westchester Community College;
Chuck Bell, Program Director, Consumers Union; Benjamin Lawsky, Deputy Counselor and Special Assistant to the Attorney General; and Gary Brown, Westchester County Department of Consumer Protection.

UPDATE: After the jump, more helpful info:

Bell said that one of the most common mistakes that borrowers make is to not shop around.

“Never go first for the private loan,” he said. “First, the grants, then the guaranteed student loans, then, if necessary, the private loans.”

Still, if a private loan becomes the option, he advised borrowers to compare at least three loans. It would be to their best interest, especially if they have good credit.

A good place to start, Bell said, was the “Project on Student Debt” website located at http://projectonstudentdebt.org. Additional information can be found at the “Free Application for Federal Student Aid” website at http://www.fafsa.ed.gov/.

Brown agreed that credit was important. He voiced concern about students ruining their credit.

He identified three common mistakes that students make when getting their first credit card:
1) They go for the credit card that offers the best freebie: the cool t-shirt or the Frisbee. Everyone needs to look beyond gift.
2) Students assume that the credit card branded with the college is the best option when it may not be. Shop around, he said.
3) They get in debt over their heads.

“It’s important to get a credit card,” he said, “but be careful.” Brown pointed out that the recent turmoil in the credit industry makes it more important that borrowers be aware of what they are up against.

According to Cuomo, students are a trusting group. “Ninety percent of students follow the recommendations of the school when choosing a student loan,” he said. His investigation showed that such trust is often taken advantage of, he said. If a borrower believes that he or she was a victim of questionable loan practices, he or she should call the Attorney General’s office, and bring it to Benjamin Lawsky’s attention, Cuomo Bell said.