The economic climate appears to have caused more problems for U.S. students bound for College. US college students are are waking up to the fact that it's nearly impossible to access student loans which they need to pay college tuition fees. Currently, there is an increase in the number of private and public lenders, who traditionally have provided educational loans, running away from this area of lending. One reason is because of the heightening squeeze on lines of credit and the non existent profitability of previously popular U.S. guaranteed money for tuition and living expenses.
It's been reported that a state agency has quit a educational loan program that serves Students and Parents looking for financial assistance. This will affect 100 universities and colleges and there are fears that other agencies and colleges may follow the same path. The reason I heard was the global credit crisis.
Some money has traditionally been supported and provided by some of the largest banks like Citibank, JP Morgan and Goldman Sachs. They have ceased supporting the low-risk security that funds for college"loans for students have always been behind. On top of this, financial experts are predicting that money for college will start to become more pricey, putting extra strain in this area.
The biggest scheme that provides college loans is the Federal government-backed student loan scheme, providing loans to means-tested students. Students mainly use these loans to pay for tuition and then seek a private loan to cover their additional expenses. It is these private loans that are set to become more difficult to find, although it looks as though companies are still supplying funds for the government scheme.
The other area of concern is the growing number of families who have been caught by the mortgage crisis - many will have college-aged children. The people most affected by the disappearance of student loans will be low income earners and people with a low credit score, and families suffering with their mortgages are now included in this group. There will be a growing number of students who will be refused loans due to their parents' credit rating.
The current estimation is that 100,000 students will not qualify for the Federal government or private student loans because of credit rating issues. This, coupled with the reduction in the number of loans actually available, will make attending college difficult for many US students.
For those who are caught between a rock and hard place with this credit crisis, a trip to your schools financial aid department is in order. They will be able to steer you in the right direction to find student aid assistance.
Never forget, never give up. If you can't get a hundred percent of your college needs financed, you may have to cut back on classes and get a full or part time job and work your way through college. I know, some will go without college rather than work, but it still works.
It's been reported that a state agency has quit a educational loan program that serves Students and Parents looking for financial assistance. This will affect 100 universities and colleges and there are fears that other agencies and colleges may follow the same path. The reason I heard was the global credit crisis.
Some money has traditionally been supported and provided by some of the largest banks like Citibank, JP Morgan and Goldman Sachs. They have ceased supporting the low-risk security that funds for college"loans for students have always been behind. On top of this, financial experts are predicting that money for college will start to become more pricey, putting extra strain in this area.
The biggest scheme that provides college loans is the Federal government-backed student loan scheme, providing loans to means-tested students. Students mainly use these loans to pay for tuition and then seek a private loan to cover their additional expenses. It is these private loans that are set to become more difficult to find, although it looks as though companies are still supplying funds for the government scheme.
The other area of concern is the growing number of families who have been caught by the mortgage crisis - many will have college-aged children. The people most affected by the disappearance of student loans will be low income earners and people with a low credit score, and families suffering with their mortgages are now included in this group. There will be a growing number of students who will be refused loans due to their parents' credit rating.
The current estimation is that 100,000 students will not qualify for the Federal government or private student loans because of credit rating issues. This, coupled with the reduction in the number of loans actually available, will make attending college difficult for many US students.
For those who are caught between a rock and hard place with this credit crisis, a trip to your schools financial aid department is in order. They will be able to steer you in the right direction to find student aid assistance.
Never forget, never give up. If you can't get a hundred percent of your college needs financed, you may have to cut back on classes and get a full or part time job and work your way through college. I know, some will go without college rather than work, but it still works.
About the Author:
As more students consider consolidating their student loans, it's critical that you get sound student loan consolidation advice before moving forward. Student loan consolidation isn't for everyone. It's also critical that you research and beware the pitfalls of student loan consolidation.
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