The crisis in the financial districts appears to have caused more problems for U.S. families. US college students are are waking up to the fact that it's harder to access student loans which they need to pay college tuition fees. There has been an increase in the number of private and public lenders, who traditionally have provided money for tuition and living expenses, pulling away from this area of finance. One reason is due to the ever increasing squeeze on lines of credit and the non existent profitability of previously popular U.S. Government secured money for tuition and living expenses.
The list of companies who are no longer offering college aid is on the increase. One state agency, that has served the student community, has recently announced that it will no longer be offering money, leaving students at nearly 100 colleges and universities with out financing for student aid.
Traditionally, college aid have been backed by some of the major US banks, including JP Morgan, Sachs Goldman and Citibank. These banks will no longer be supporting the auction system that allocated resources for student aid. There are also predictions that money will become more cost prohibitive.
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.
An estimated 100,000 college students will no longer qualify for federal government or private company loans this year because of the problem of poor credit ratings. This situation adds to the reduction in the number of companies providing student loans to make a grim future for some aspiring college 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.
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 strapped Student may have to get an education the the way Grandad did...by working in College and paying for it their self. - 16732
The list of companies who are no longer offering college aid is on the increase. One state agency, that has served the student community, has recently announced that it will no longer be offering money, leaving students at nearly 100 colleges and universities with out financing for student aid.
Traditionally, college aid have been backed by some of the major US banks, including JP Morgan, Sachs Goldman and Citibank. These banks will no longer be supporting the auction system that allocated resources for student aid. There are also predictions that money will become more cost prohibitive.
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.
An estimated 100,000 college students will no longer qualify for federal government or private company loans this year because of the problem of poor credit ratings. This situation adds to the reduction in the number of companies providing student loans to make a grim future for some aspiring college 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.
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 strapped Student may have to get an education the the way Grandad did...by working in College and paying for it their self. - 16732
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.
