Amy Said:

How does the IRS handle Private Student Loans?

We Answered:

Loans are not considered income when you file your taxes because you have to pay them back. They will have no impact on your taxes at all.

Mark Said:

is this reasonable for a private college?

We Answered:

Actually, that is modest.

You can compare that to any number of small liberal arts colleges - usually the information is on their website.

Just as an example for comparison:
Rhodes College in Memphis http://www.rhodes.edu/

Concordia University in Austin: http://www.concordia.edu/

Whitman College in Washington state http://www.whitman.edu/content/

Look at their housing costs and their tuition and fees and you'll see how your school's compare.