Articles
Newsletter
| Slowing Economy Shuts Out Many Needing Student Loans |
 |
 |
 |
| Written by Ronaldo Q Cacheezey |
| Sunday, 11 January 2009 09:55 |
|
The economic climate appears to have caused more problems for U.S. families. College students in the U.S. are are waking up to the fact that it's difficult to access student loans which they need to pay college tuition fees. In recent months there has been an increase in the number of private and public lenders, who traditionally have provided money for college, withdrawing from this area of student aid. Others believe this is due to the growing crack down on credit worthiness and the low profitability of previously popular U.S. Government secured educational loans. It's been reported that a state agency has done away with a educational loan program that serves those seeking financial aid. This will affect 100 universities and colleges and there are fears that other agencies and colleges may follow the same path. I read that the reason was the state of the economy. Student loans are usually supported by some of the major banks, including Goldman Sachs, JP Morgan and Citibank, but they have stopped supporting the normally low-risk securities that college aid traditionally backed. Financial experts are predicting that funds for college will also become more expensive, as well as being harder to access. One of the main sources of credit to students has always been the federal government backed education assistance, which provides funds to means-tested students. Many students find that this loan only covers tuition and they then need to take out a further private loan to cover other expenses. These are the very loans that are tipped to disappear, although it seems as though lenders are standing by their obligations under the federal backed program. The effect of the credit squeeze will affect those families with poor credit ratings and lower incomes. The people who have been caught up in the mortgage crisis may have children studying at college, who will no longer be able to access student loans because of their parents' credit score. It has been estimated that about 100,000 students will not qualify for private or government loans this year due to poor credit. Add to this the decreasing number of companies providing student loans, and there will be problems for many college students. Students caught up in this financial crisis and who are unable to obtain student aid still have a few solutions left. You should go and talk to the student aid department at the school you're wanting to attend to see if there are any scholarships or grants available to you. They may also be able to get you enrolled in a State aid program or find you a source of aid not available to just anyone. If you wake up and find that you've exhausted your resources, then it's important to start researching unconventional ways such as scholarships, grants or small loans. In the end, a financially poor Student may have to get an education the old school way...by working through college and paying for it out of your own pocket. About the Author: With today's state of the economy, most students can't find student financing. This is another reason to be careful when considering a student loan consolidation. There are dangers and consequences to consolidating your college loans, so be sure that you get sound advice before applying for another student loan. Kindly provided by LJ-Marketing.dk You are welcome to use this article on your own website, if you include the link just before this text. |
Stumble It!
Members : 1254
Content : 2297
Web Links : 1
Content View Hits : 309678
Content : 2297
Web Links : 1
Content View Hits : 309678