Financial aid still available for college students
With the National Center for Education Statistics saying 50 percent of all college students require financial aid of some kind, the credit crunch has some students nervous about acquiring next year’s school loans.
“I don't think I know anyone who is not taking out student loans. It is pretty necessary,” said a student.
The average cost of college increases at twice the rate of inflation. The College Board estimates that state schools cost an average of $13,000 a year and private schools costs $28,000.
Each year since 1993, author Kal Chany has updated his book, "Paying for College without Going Broke," and says government funding will not run out just because the economy has been flirting with recession.
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“The federal loan programs still are in existence,” said Chany. “The Perkins loan is the student loan that is awarded by the colleges. A more common Stafford student loan or direct Stafford loan, the Department of Education has once again reassured parents and students that those loans will be available at eligible schools.”
Experts say it's not that loans have gotten harder to secure, but that students have to approach the process in a slightly different way.
“The student needs to make sure if they have had a loan before,” said Barbara Hall, Associate Provost of Enrollment Management at NYU. “They need to check and see if their lender is still making loans, because many banks have dropped out of this process. If they are not, they need to go and select a new lender. They need to do so early, so that if that bank does not approve them for a loan, they have time to go and find another loan.”
For that reason, Hall recommends locking in loans early.
“We are up almost 13 percent in loan approvals over last year, which means the loans are out there and people are going after them more quickly,” said Hall.
The students say they have heard the message loud and clear.
“The deadlines are very strict. If you miss them, there is a not a whole lot you can do about it,’ said a student. “So definitely keeping in touch with the university, online bulletins and that kind of thing is very important.”