Real People, Real Issues - Student Loans
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Reported by: Jason Frazer
Thursday, Nov 13, 2008 @10:18am EST
For Christopher Bieasinski, a junior studying Russian, the University of Rochester was a perfect fit. It was located near downtown Rochester, and the price was affordable with the help of some student loans.
"My first two years here, my package was really easy to get. It completely met all of my needs, and I didn't have a single problem at all," said Bieasinski. "However, this year, looking at my financial aid package earlier in the semester, I noticed that there were some gaps there, and I didn't get as much money."
As the average price for tuition nationally increases more than 3% each year, more students have been turning to student loans from Sallie Mae and Citibank to help finance their education. As more students get more loans, they are graduating with an average of $19,000 of student loan debt.
Verna Hazen, the assistant vice president of financial aid and scholarships at RIT, said she's seen an increase in the amount of students coming into her office asking for more student loans. She attributes some of it to the lack of available private student loans.
"I think the credit requirements for private loans are a little tighter this year than they have been in the past," said Hazen. "Some of the smaller lenders are choosing to withdraw from the private loan programs."
"I definitely think it relates right back to the financial crisis that we are facing right now," said Bieasinski. "People are less likely to want to loan money to students, because we have had no real way of paying it back, so its tough."
There is still money available for students looking for extra cash. In May, Congress attempted to offset the loan crunch by increasing the maximum amount of federal student loans.
"My advice for parents who are preparing for college, and they don't want to borrow money, tell your son or daughter work part time, look for work study, consider a state school versus a private school."
"If you are in school and you have concerns, the first thing to do is contact your the financial aid office," said Hazen. "Make an appointment with the financial aid counselor. Even if you assume you know the answer, don't assume."
Christopher followed that advice and went to see his financial aid counselor. He was awarded additional student loans.
"I imagine that I am going to have to take out more loans next year again. Hopefully a year from now, things will be settled down and I won't have to," said Christopher. "Who knows if it continues this way, I'll probably have to take out another loan to pay for more school."
One additional option that students and their families have to pay for college is finding scholarship money from non-profit groups and corporations. There are a number of websites which automatically send you updates on scholarships your family may be eligible for.
For more information, click here.
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