There's a lot of talk going around these days about the effect of the subprime meltdown on the economy. Certainly, the skyrocketing number of underperforming loans and mortgage foreclosures is affecting the economy, but how much it will damage the economy, and how deep and how long the recession will be, is still open to debate as those in government still grapple with how to best steer clear of the rocks in the river.
You don't have to be a new homeowner, or a homeowner who's recently refinanced, to have the meltdown affect you. If you are a college student putting together the details in your financial aid package for next fall you will find the course of the river has shifted, and many of the familiar landmarks are gone. Some large lending institutions, among them Citibank and Chase, are shutting down their loan business with institutions that are deemed riskier. The New Hampshire Higher Education Assistance Foundation (NHHEAF) Network is suspending its alternative student lending and Sallie Mae has stopped making federal consolidated loans.
The U.S. Congress is trying to address this situation through legislation that aims at putting more money into the student loan market, increasing the capital available to state guaranty agencies. Several bills have been proposed and one new bill was signed into law on May 7. The bill, Ensuring Continued Access to Student Loans Act of 2008 (H.R. 5715) makes significant changes to federal student aid by providing liquidity in the federal student loan market. Starting July 1, 2008, the bill introduces an additional unsubsidized Stafford annual limit of $2000 for dependent students and even more flexibility if parents are denied a PLUS loan. It also increases the additional unsubsidized Stafford annual limits by $2000 for independent undergraduate students. Students who wish to process the additional loan amounts need to contact the college’s financial aid office.
At White Mountains Community College we know tuition is high and traditional government loans and grants are simply not enough to cover the cost of college. We are ready to help you through these challenging times. A lot is still unknown, but we do receive daily updates from lenders and guarantors. At this point, the Stafford and PLUS loan programs are operating pretty much as they always have. It's the alternative loan markets that are feeling the effects of the credit crunch and even then the effects vary from lender to lender.
To better prepare yourself for the expenses ahead, you should contact our business office to get an idea of your tuition costs and what your payment options are. Have a conversation with parents, spouses, or anyone else involved in helping you with your college costs. Our financial aid office is a great place to find out about other resources available to help finance your college education.
In economically challenging times it is even more important that you continue with your educational plans. The need for skilled, educated workers will not go away, even as the economy fluctuates. Whether your dream is to be a teacher or auto technician, or to enter one of the other many professions we prepare you for here at the college, you should not give up your dream of further education because of the problems at major financial institutions.
Students are encouraged to work with us so that they are not burdened by financial pressures the first few weeks into the semester. Our financial aid and business offices are open Monday through Friday from 8 a.m. to 4:00 p.m. Give us a call at 752-1113 and let us know how we can help you.
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