Financial Aid Crisis

This was a post that I wrote for the blog that I maintain for my students.

It's bad enough that the cost of a college education is costing an obscene amount of money. More and more students are looking to financial aid to assist will the cost of their education. But, there is a new wrinkle in the aid process. As a result of the sub-prime mortgage crises, it may be more difficult for college students to obtain financial aid . In fact, many lenders, including Sallie Mae, are imposing stricter guidelines for those applying for aid. In fact, Pennsylvania has suspended all federally funded student loans.

In addition, many lenders are getting out of the student load business, becuase the Federal government has lower the amount of subsidies that the lenders receive from the Feds. Those who are using private loans are not immune from this crisis as many private lenders are raising their rates due to the influx of students looking for aid.

This is very frightening. Many students rely on financial aid and would be unable to attend college without it. Many in higher ed are concerned that many students will not return to school in the fall because they are unable to secure financial aid.

So, what can you do to protect yourself? According an article by Liz Pulliam Weston, one of the best pieces of advice is to get your financial aid together as soon as possible. Procrastination can result in your having a difficult time obtain aid. You should also look for other sources of aid such as scholarships and grants. There is free money out there, you just have to look for it. Go here for more information about other sources of aid.

The bottom line? Become proactive when it comes to your education. Do your homework and figure out what you need so that you can continue your studies.

-Seeking Solace