SAN FRANCISCO (KCBS) -- The current economic crises in the financial sector may make it harder for college students to get help paying for school.
A huge sea change in the type of federal financial aid that students receive has made it harder to get through higher education, according to Tamara Draut of the non-partisan public policy organization Demos.
KCBS’ Melissa Culross Reports
"Today, two out of three college students borrow money to help pay for college. That's up from one out of two in the early 1990s. The other thing that has happened is that students are borrowing a higher amount, and then graduating into the economy, with on average $20,000 in student loan debt," said Draut.
And now recent economic troubles are making it harder for students to get loans. Sallie Mae, the nation's leading lender of federal student loans, has tightened its loan criteria, as have private banks that have adversely been affected by the sub-prime mortgage crisis.
College application specialist David Kenney with CollegeZapps.com advises that students thinking about college apply to between six to ten schools, both public and private.
"Once you apply to more schools, and you get accepted to more schools, you get options through the financial aid package that they offer you, and that may save you thousands of dollars, and allow you to not take out private loans," said Kenney.
Unfortunately, Draut says financial aid for students has not kept pace with the skyrocketing cost of a college education.
(MGO)
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