College students affected by bad Economy

[kst$]

It is going to be harder for that middle to lower class student to get college loans. The enconomy has really been hit hard and the banks are tightening their belts and higher interest rates make it difficult to impossible for some students trying to get their money together for this falls sessions.

Over the years, panelists noted that colleges have seen state funding dwindle, changes to student loan programs and economic challenges such as high gas prices in the 1970s and 80s.
"What's unique about today is we're facing all of these things simultaneously, and they all have an impact on our institutions as well as our students," said panelist Donald Heller, director of the Center for the Study of Higher Education at Pennsylvania State University.
The committee, which meets about twice a year to discuss issues involving college access for low and moderate-income students, held the daylong panel discussion at Vanderbilt University in Nashville.
Some panelists said they believe the current economic downturn is different than previous ones because financial markets are having a bigger impact on higher education.
"The wealth that's generated (from financial markets) flows to higher education partly through philanthropy from private donors. And we would expect to see some negative effects from the decline of the financial markets because of that," said panelist John Nelson, a managing director with Moody's (nyse: MCO - news - people ) investor service.
"Then there's the impact ... on the financing of private lenders for student loans. The financial market disturbances have really shut down the student loan market."

Panel: Bad economy means less access to college
By ROSE FRENCH

It wasn't hard for my kids to get the student loans when they went to college the trouble now is paying them. and the banks they were dealing with call them constantly wanting them to change their payment plans to somthing different. I keep telling them not to do it because every time they would change somthing the loans starts all over again and it will take longer to pay off. Their interest is little to nothing now why would you want to change that for a higher rate . My advice is leave it alone the deal is better than what they are trying to switch it to.

[carol b]

You have that right. It is ridiculous to have a bank call you
about these loans if you aren't behind on your payments.
It may be that they are only looking for more money and
it isn't fair to get it this way. Good for you for telling them
to keep it steady. Make sure that they read all of the
contract if they do decide to redo the loans so that they
don't get hit hard with interest or finance charges. Balloon
payments are another thing to watch out for.

[kst$]

Believe me we told them of all the tricks they will come up with. You lower your interest to 4.2 for a year and if you pay it off in that time your good but if its not paid off within that year the interst goes to 12. something. It always sounds better but bites you in the end.

[moneysense]

That is a real shame. There are kids out there that can get scholarships on their intelligence alone, but how do they get the rest of the money?

This country was once dubbed "the land of opportunity", can we still say that? I think not. And if we cant put our own kids through college, what about others that come from other countries, and need help with tuition and get it? Everyone needs and deserves the same treatment.