Recession causes student loan scarcity
Amanda Berwind
Issue date: 6/5/09 Section: News
From the moment the college acceptance letter is ripped open and the envelope tossed aside, students tirelessly work toward the ultimate goal of donning the cap and gown at commencement.
This journey is met with plenty of obstacles; most notably the financial one. Every year, students pour tens of thousands of dollars into the higher education system seeking their degree. They receive scholarships, grants and, most often, loans.
The past year has seen fiscal turmoil in practically every industry. That of the banking industry has been the most publicized. Now, as college students seek out funds for the fall semester, they too are feeling the pain of the crisis. After watching their parents lose jobs, file for bankruptcy and see childhood homes enter foreclosure, college students are now the latest victim of the main street pandemic.
"I try not to think about it because I am already registered for classes. Summer school is $7,000, but I don't have $7,000," said Courtney Terlecki, a junior at DePaul. She, like others, was surprised when she applied to Sallie Mae, the nation's leading student lending agency, only to have her loan turned down because she needed a co-signer.
In the past year, Terlecki has accrued too much student loan debt to meet Sallie Mae's standards for a qualified borrower. Although in previous semesters she alone had signed on her student loans, she now needs a parent or other person with good credit to sign on with her. This is where Terlecki feels trapped.
"My dad just declared bankruptcy and my mom just took out a loan and now my sister has to take out her own loans." Federal aid offers Terlecki no immediate hope either. Terlecki comments that in the previous year she had no problems signing with Sallie Mae.
"I already work two jobs, I don't know what else they want," she said. Terlecki now worries about how she will find a job that earns enough to begin payment if she is forced to drop out.
"Most people I know don't go back. They never do," Terlecki said.
This journey is met with plenty of obstacles; most notably the financial one. Every year, students pour tens of thousands of dollars into the higher education system seeking their degree. They receive scholarships, grants and, most often, loans.
The past year has seen fiscal turmoil in practically every industry. That of the banking industry has been the most publicized. Now, as college students seek out funds for the fall semester, they too are feeling the pain of the crisis. After watching their parents lose jobs, file for bankruptcy and see childhood homes enter foreclosure, college students are now the latest victim of the main street pandemic.
"I try not to think about it because I am already registered for classes. Summer school is $7,000, but I don't have $7,000," said Courtney Terlecki, a junior at DePaul. She, like others, was surprised when she applied to Sallie Mae, the nation's leading student lending agency, only to have her loan turned down because she needed a co-signer.
In the past year, Terlecki has accrued too much student loan debt to meet Sallie Mae's standards for a qualified borrower. Although in previous semesters she alone had signed on her student loans, she now needs a parent or other person with good credit to sign on with her. This is where Terlecki feels trapped.
"My dad just declared bankruptcy and my mom just took out a loan and now my sister has to take out her own loans." Federal aid offers Terlecki no immediate hope either. Terlecki comments that in the previous year she had no problems signing with Sallie Mae.
"I already work two jobs, I don't know what else they want," she said. Terlecki now worries about how she will find a job that earns enough to begin payment if she is forced to drop out.
"Most people I know don't go back. They never do," Terlecki said.
Viewing Comments 1 - 2 of 2
douglas bick
posted 6/23/09 @ 10:21 PM CST
wow, i know what those kids are feeling! my middle girl will be attending univ. of dayton in the fall. with a $12860 balance on her tuition! we were denied a plus loan, my dad co-signed w/2 banks and salle mae, all three were no go's. (Continued…)
Payday Loans Laws
posted 2/13/10 @ 7:30 PM CST
Its true, especially when it comes to private lenders. They've been shutting down left and right. A student doesn't have many options these days when it comes to loans. (Continued…)
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