College kids bound for U.S. colleges appear to be the latest victims as the global credit crisis worsens and cash from student loan companies goes away. American students who need a student loan to pay their way through college, are starting to have a tough time accessing funds. A huge amount of public and private lenders are cutting back on college aid, creating a hardship for many students depending on this aid for college.
The list of companies who are no longer offering financial assistance is on the increase. One state agency, that has served the student community, has recently announced that it will no longer be offering college aid, leaving students at nearly 100 colleges and universities with no money for money for tuition and living expenses.
Some financial assistance 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 expensive, putting extra strain in this area.
The major source of funds is a federal government scheme in which it backs loans to means-tested students. The loans for students are often used for tuition fees and then a further private loan is usually needed to cover general expenses. It is these private loans which will become more difficult to obtain. As yet, there is no evidence to suggest that lenders are failing to support their obligations to the federal loans.
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.
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.
Should all your attempts at securing a traditional student loan fail, then it's important to start researching unconventional ways such as scholarships, grants or small loans. In the end, a financially poor credit risk Student may have to get an education the old school way...by working through college and paying for it out of your own pocket. - 16732
The list of companies who are no longer offering financial assistance is on the increase. One state agency, that has served the student community, has recently announced that it will no longer be offering college aid, leaving students at nearly 100 colleges and universities with no money for money for tuition and living expenses.
Some financial assistance 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 expensive, putting extra strain in this area.
The major source of funds is a federal government scheme in which it backs loans to means-tested students. The loans for students are often used for tuition fees and then a further private loan is usually needed to cover general expenses. It is these private loans which will become more difficult to obtain. As yet, there is no evidence to suggest that lenders are failing to support their obligations to the federal loans.
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.
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.
Should all your attempts at securing a traditional student loan fail, then it's important to start researching unconventional ways such as scholarships, grants or small loans. In the end, a financially poor credit risk Student may have to get an education the old school way...by working through college and paying for it out of your own pocket. - 16732
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With today's state of the economy, most students can not find student financing. This is another reason to be careful when considering a student loan consolidation. There are pitfalls and consequences to consolidating your college loans, so be sure that you get sound advice before applying for another student loan.
