Credit Crisis Crunching Some Student Loans
As turbulence in the economy continues, it’s trickling down; through the housing market and automotive industry, and now onto college campuses.
Financial Aid Offices are trying to help Kansas students stay in school, and pay for it.
Derek Matthews signed into Financial Aid many times before. He hopes this time isn’t the last time. “I was telling my roommate and everybody that you’re going to have to find someone else, get a different roommate because I probably won’t be back next semester,” he said.
Financially, things were fine when the Wichita State freshman started school, then the economy took a turn.
“With my family, it’s kind of important now,” said Matthews, “especially since my Mom was in the mortgage industry. So when the economy went down, she was unemployed. So my payment for college was kind of out the window. So getting loans and scholarships and stuff is kind of important.”
Matthews isn’t the only one looking for help. The phones inside WSU’s Financial Aid office are busy, even with a semester break looming.
But good news for college students and their families: despite the weak economy, student loans are still available.
“There shouldn’t be a problem for students to be able to get federal student loans right now,” said April Keim of WSU’s Financial Aid Office, “so there shouldn’t be the wide-spread panic that student loans are in jeopardy.”
About 8 out of every 10 students on WSU’s Campus qualify for some sort of financial assistance. That can come in the form of federal loans, grants, or scholarships, or private loans. But the Financial Aid Office cautions students to use private loans as a last report to pay for college. “Students should always apply for federal financial aid first, really, before they seek those private student loans,” said Keim. “They have better interest rates, they’re not based on credit.”
As Matthews learned, don’t wait to apply for student loans, or seek help. It’s a mistake that could cost you your education.
Related posts:
- Student Loans Get Harder To Come By
- Fed to help secure student loans
- U of C cuts ties with state student loan agency
- Students may look elsewhere for loans
- Private student loans tighten
Tags: Student Loans