The economic climate appears to have caused more problems for U.S. families. United States college students are discovering it's harder 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 college loans, running away from this area of financial aid. Part of the reason is because of the heightening crunch on lines of credit and the non existent profitability of previously popular government secured financial aid.
I heard one news alert that a state agency has stopped a loan program that serves college students. 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 disruption of capital markets.
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 funds for college 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 college aid, 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 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.
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.
Always remember this, don't 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. Yeah, this isn't popular with the kids today, it's still one of the best ways to come out of College with not student loan debt.
I heard one news alert that a state agency has stopped a loan program that serves college students. 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 disruption of capital markets.
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 funds for college 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 college aid, 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 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.
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.
Always remember this, don't 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. Yeah, this isn't popular with the kids today, it's still one of the best ways to come out of College with not student loan debt.
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As more students think about consolidating their student loans, it's important that you get sound student loan consolidation advice before moving ahead. Student loan consolidation isn't for everyone. It's also important that you research and beware the pitfalls of student loan consolidation.
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