Economic woes cause worry among students

According to College Board, the price of college tuition has increased approximately eight percent in the past year. With the recent downward spiral of the economy, students across the board are clamoring for ways to finance their education. Fifty- two percent of enrolled GCSU students in fall 2008 are here on federal student loans, but many seem reluctant to talk about it.

“Loans give students an opportunity to be free from their parents,” sophomore Brittney Pickard said. “It gives students a chance to build their credit after they graduate.”

The economy’s turmoil and the involvement of the main financial student loan giants, Fannie May and Freddie Mac have been thrust into a financial black hole that threatens to suck its patrons. The Department of Education passed legislation in May for the federal government to help student loan providers stay afloat in the financial showdown. Programs such as ECALSLA- Ensuring Continued Access to Student Loans- have been implemented in Georgia to stabilize the shaky market and were recently extended to 2010. Panicking students have looked to the GCSU Financial Aid Office for guidance.

“Our students and parents won’t be affected by the financial downfall,” Cathy Crawley, Director of Student Loans said. “We don’t want this to create panic, and would be the first to let students know if there was any complication. The financial aid department is determined to do whatever we need to as an institution to not interrupt studies at GCSU.”

Students at GCSU that have federal loans are safe, but private loans are still in danger of collapsing because they are not covered under the federal aid plan of action. The increasing cost of college is contributing to the credit crisis as more and more students put themselves in debt from student loans. To help students deal with student loan debts, the GCSU financial aid office offers exit counseling to graduating seniors. Suggestions for dealing with the debt are budgeting, deferring loans, forbearance and consolidating, as well as others.

“With graduation coming up, the thought of paying off student loans is always looming at the back of my mind.” Josh Farell said. “I couldn’t have gone through college without loans, and banks love to target college students with high interest rates. Loans are a necessary evil.”

The state of the economy has affected student loans to a degree by making it more difficult for students to be approved for a loan. College students are being forced into the world of finances without any training or guidance. The Financial Aid department at GCSU encourages students to come by with any difficulties or questions about the loan process, but many students are still uneducated in financial know how.

“Students at GCSU are not aware of the market and are often at the mercy of the government,” Caitlin McCourt said. “I worry about my financial future, and hope that everything works out okay even though I have student loans.”

Other options for financial aid for college students are scholarships and grants. Thousands of scholarships are granted every year to hardworking students with no payback plans or confusing interest rates.

“Loans are definitely easier to get,” freshman Emily Martin said. “I would rather get scholarships, but they are sometimes difficult because of the requirements. Scholarships are definitely the better alternative in today’s economy.”

Loans continue to support college students as they work their way to a degree and as the economy attempts to stabilize itself. Student Loans have become a staple to college life with the rising costs of education and have been protected by the government to ensure the continuance of education.

Posted by Colonnade Archives on Dec 5 2008. Filed under News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry