The Coming Student Loan Crunch

[tetsujin]

If you're counting on borrowing money for college next semester, get your paperwork going now. Lenders are backing away fast.

By Liz Pulliam Weston
College students heading off to campus in the fall will face a radically different student loan situation than they did just a year ago.

The credit crunch that rattled mortgage lenders has spread to the education lending market, with dramatic results. If the situation doesn't ease in coming months, student lending experts say, borrowers can expect:

Higher loan costs.

Fewer lenders, which could mean tens of thousands of college students scrambling at the last minute to find money.

Tougher standards that could prevent some students from borrowing at all.

Read the rest of the article here http://articles.moneycentral.msn.com/CollegeAndFamily/CutCollegeCosts/TheComingStudentLoanCrunch.aspx

Personally this worries me, loans kind of are my lifeline to be in college at the moment...

Cameron

[Sal Atticum]

Economics is definitely not my strong point, but shouldn't we have seen this coming?  Borrowers borrowing too much, lenders lending too much, and everybody digging themselves a great big hole.

[pmp6nl]

Oh great.  Less money for higher education.  Just what we need in the country, I mean its not like the United State is falling behind many other countries or anything.

I better get looking into my finances for next year

[tetsujin]

I have already jumped on and started looking, geebus.

Cameron

[pmp6nl]

You wouldnt think this would affect federal-backed student loans... IE: Stafford, would you?