UntitledYou would think that being in a "financial crisis" would instill some sudden
panic in the lives of Americans. Perhaps everyone is simply taking the stress in
stride. Or maybe…the big crash has yet to hit.
Mark Kantrowitz, publisher of FinAid.org, claims
that as of October, 137 lenders had stopped making federal student loans and 36
had stopped issuing private loans. Additionally, lenders are increasing
credit-score minimums, making
loans harder to get.
Kantrowitz adds that "students at four-year schools are going to be more
profitable than students at two-year schools." Loosely translated, that means
that lenders will consistently choose a four-year versus two-year college
student when deciding who to lend money to. Once again, loans are becoming more
difficult to come by. And this just in…they'll cost
you more too.
Scholarships are the Solution: Obviously, a loan is already hard to
obtain because of the downward economy. Rather than stopping by your local bank
as a solution, hit up local clubs, charities, or past places of employment.
Those types of organizations typically offer scholarships. And if you're
planning to pay for college, you need to be more creative in your financial
quest for cash.
Some community colleges are reporting an increase in enrollment and
attributing it to students seeking a cheaper college path. This is evidence that
families are making more "money smart" choices.
Transferring is so hot right now: If you want to save money, take
general requirement courses at a community college and then transfer
to the four-year college of your choice. It's a great money-saving option. Just
make sure that your credits will transfer.
Tufts University, which provides full financial need to every undergraduate
they admit, is already preparing for next fall. With the rise in unemployment
rates, the financial aid office is expecting more of a need from families that
wouldn't have needed aid before. But they are determined to continue to operate,
from a financial aid standpoint, as they always have.
Find financially gracious schools: Other schools, like Tufts, take
applications on a need-blind basis. What exactly does that mean in plain
English? They don't examine your family's finances while determining your
admission. You can also look for schools, like Amherst College, who provide all
students with scholarships instead of loans-meaning you graduate without
debt.
From the scenarios above, it's apparent that the panic is subtle…for now. But
just as Tufts University is beginning to prepare for a slight or significant
onslaught, so should everyone else.
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