College Student Loans Tougher To Get
The credit crunch has banks tightening lending and making it tougher for some college students to get loans.
Getting private student loans is becoming more challenging. The Consumer Bankers Association says, because of the credit crunch, some banks are not offering any more private loans and most of the ones that are, are upping their qualification criteria.
Andrea Payne is a finance major, but now the numbers she’s most worried about are the ones need to pay for her senior year of college. “I need to get a really good waitress job now,” the University of North Texas student said.
For the past three years Andrea has received private student loans from Bank of America. This year both Bank of America and Wachovia stopped offering private student loans.
UNT Financial Aid Counselor Carolyn Cunningham says, “The credit crunch could have further ramifications. We’re not sure of that now.”
In reaction to the economic crisis, the federal government upped the amount they are loaning students, but for students like Andrea it’s still not enough.
The average private college tuition costs more than $23,000 a year. The average public college tuition runs just under $9,000 a year.
The federal unsubsidized Stafford Loan is the one most available to students and offers just $5,500 for a freshman and $7,500 for a senior.
Andrea says she hasn’t given up on getting a private loan and is trying other banks. She’s also moved into her grandmother’s home, farther away from campus, to save money.
Some North Texas banks that are still offering private student loans have upped the criteria for approval, including requiring a co-signer in many cases.
Concerned students should talk to a financial aid advisor at their school. While getting funds may be a longer process, help is still available.
Provided by DENTON (CBS 11 News)