• Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • College Financial Aid
    • Financial Aid for College
    • Student Financial Aid Eligibility
    • Student Financial Aid
      • Student Loans for College
      • College Financial Aid 101
      • Need Based Student Loans
      • Financial Aid Forms (FAFSA & College Board’s Profile)
      • Military Student Financial Aid
        • College Benefits for Active Duty Military
        • National Guard Education Benefits
        • College Aid for Military Reservists
        • College Aid for Military Veterans
        • Military Dependent Financial Aid
    • Financial Aid Programs
    • Paying for College
  • Scholarships 101
    • College Scholarships (Overview)
    • College Scholarship Applications
    • College Scholarship Essay Writing Tips
    • Unusual Scholarships
    • Unclaimed Scholarships
    • Free College Scholarship Searches
  • Find a Scholarship
    • Latest Scholarship Postings
    • Student Scholarships by College Major
    • Scholarships for Hobbies and Interests
    • Sports Scholarships
    • Community Service Scholarships
    • Association Sponsored Scholarships
  • Find a Student Loan
    • Private Student Loans
      • Sallie Mae Student Loans
      • PNC Student Loans
      • Charter One Student Loan
      • Wells Fargo College Loan Programs
      • Texas Dow Employees Credit Union Loans
      • SunTrust Education Loans
    • How Do Student Loans Work?
    • Types of Private Student Loans
    • Student Loans to Cover Living Expenses
    • Private Student Loan Interest Rates
    • Graduate Student Loans from Private Lenders
  • Saving for College
  • Site Map

Financial Aid Finder

Your Guide to Maximizing your College Financial Aid

Financial Aid Finder HomePage
You are here: Home / Financial Aid News / Will the financial crash affect your college financial aid?

Will the financial crash affect your college financial aid?

October 7, 2008 By mara

October 6, 2008 by Mara Strom

You can’t turn on the TV these days without being bombarded by financial doom and gloom.  If you are a college student (or planning to be one in the near future), there is no doubt that


current economic climate is going to have some kind of an impact on your student financial aid package.  Over the next few weeks, we’ll be looking at the cost of attending college during an economic downturn, with stories on how to recession-proof your college savings and how the market cash will impact your 529 Plan.

This week, I’m putting the spotlight on how the recession may impact your student loans. The University Chronicle recently reported on how that the current credit market crunch is affecting education lenders. According to their October 2nd article, the loans that will be affected by the market crash are private student loans.  Experts say that federal loans will continue to be secure.

Most current private loans feature a fixed rate (albeit higher than the rate on federal loans), so the recession should not affect your existing loan.  If you need to take out a private loan in the future, however, expect to see higher interest rates – and stricter terms of approval.

Private loans are being affected by the market differently because lenders also have to worry about student loan defaults. That’s probably going to sound like bad news to the majority of you.  According to a recent Seattle Times article, more than 2/3rds of college students borrow money to get through school.  That’s up from less than half just a decade ago.  As unemployment figures go up, student loan borrowers will likely increase as well – since parental contributions may be drying up.

The good news is that many colleges, especially expensive private schools (where the average annual cost of tuition alone is $23,000), are digging deeper into their coffers to help students need.  According to this recent story on NPR, the key to getting more aid is being willing to ask for it.

Are you finding that the credit crunch is affecting your college budget?  What creative solutions have you taken to cover yourself for this semester?

Sallie Mae Student Loans Ad

Filed Under: Financial Aid News Tagged With: college financial aid, credit crunch student loans, market crash student loans, private student loans, student loan crisis

Primary Sidebar

FinancialAidFinder Logo
Sallie Mae Student Loans Ad

Latest Scholarship Postings

Leland Harris/Gilbert Truax Engineering Education Scholarship (Deadline: March 1, 2023)

January 26, 2023 By The FinancialAidFinder Scholarship Team

Ida Knaebe Memorial Scholarship (Deadline: March 1, 2023)

January 26, 2023 By The FinancialAidFinder Scholarship Team

Helen Sanecki Scholarship (Deadline: March 1, 2023)

January 26, 2023 By The FinancialAidFinder Scholarship Team

Edward and Eulalia Woloszyk Scholarship (Deadline: March 1, 2023)

January 26, 2023 By The FinancialAidFinder Scholarship Team

More Scholarship Listings

Sallie Mae Student Loans Ad

Explore Financial Aid Finder

  • College Financial Aid
  • Saving for College
  • Military Financial Aid
  • Grants for College
  • Student Scholarships
  • Student Scholarship Search
  • Find Student Loans
  • Financial Aid Info
  • Register to Receive College Financial Aid Updates
  • About FinancialAidFinder
  • Contact Us

Tags

529 plans applying for scholarships college college financial aid college savings plan college savings plans college scholarship college scholarships college student loans college tuition community college debt distance learning education engineering scholarship essay scholarships expected family contribution FAFSA federal student loans financial aid financial aid application financial aid eligibility free money for college GI Bill grant Grants hispanic scholarships minority scholarships Pell Grant Pell Grants private student loans reduce cost of college saving for college scholarship scholarship applications scholarship essays Scholarships scholarships for college student financial aid student loan student loan consolidation student loan debt Student Loans Info tuition work study

Footer

About FinancialAidFinder
Contact Us
Privacy Policy
Cookie Policy

Scholarship Submissions

If you offer a college scholarship, you can submit it to us through this form:

Scholarship Submission Form

Copyright © 2023 · FinancialAidFinder - All rights reserved.