Question: economy and student loans?

[javasaurus]

Does anyone know how the economic downturn and lack of banks' lending ability has affected student loans? Will fewer people be getting an education in the coming year because of this?

Comments

[acroyear70.livejournal.com]

it has started a bit already. federally guaranteed loans are still there and good, but if you don't quite qualify for those (there is a really tight layer where people make to little to afford but too much to qualify for protected aid) and need a more general loan, it may be harder to get on a poor credit rating.

really the biggest problem today has been the 520s that have lost most of their value. these are tax-free investments like a traditional IRA (taxed going in so no tax on the capital gains). they're relatively new so they haven't hit a lot of people, but it ain't exactly helping to sell the things either.

[blueeowyn.livejournal.com]

Fewer people will be getting an education (or being more in debt) for a number of reasons.
1) The people who had funds in an educational trust for kids who are going to college now (or will in the next year or so) are screwed.
2) Because of an increase in default on student loans (going back a few years), there is less money in the student loan arena thus fewer loans
3) Because of stricter regulations on giving student loans, fewer people will qualify for them
4) Because of the bad economy, sales are down and states are having budget troubles which means cuts for Higher Education ... which increases tuition and decreases access
5) Because of shipping charge increases (because of the gas prices); textbooks and other normal things are going up (which again affects everyone but really can hit a marginally financed college student)
6) Because of cuts, there may be fewer jobs available ...
7) Scholarship money from endowments is also likely to be affected by the collapse