One main concern that most parents have from the day their child is born is their future education. The apprehension is to the extent that they begin a college fund early so that they can be assured that when their child graduates from high school, they will be financially situated to go to the college of their choice. Today, however, the global recession has taken the joy out of graduating for most college students because of the poor market and lack of job opportunities. Students are now marching across the stage at graduation with their excitement being replaced by anxiety and fear, burdened with the difficulties of seeking solutions for future employment.
How the US Recession is Causing Students to Suffer
Many states across the country are experiencing cutbacks. As they gather for their yearly sessions to plan budgets for the coming year, the streamlining is becoming greater, including the decrease of state employees and other financial assistance programs that were being offered to students. This in turn affects colleges and universities because most of their employees are hired through civil service state employment. These setbacks give the schools no other alternatives but to find different avenues of supplementing the financial setback, which consequentially includes increasing tuitions. The repercussion is that students wind up bearing the brunt of the extreme financial burden.
Students are now the victims as the slow economy continues to remain stagnant and capital is becoming less available. Private financial institutions are pulling back and are not offering the once lucrative packages that would assist the students to offset their educational financial tabs. Students whose parents’ credit has been affected by the economic downturn will no longer remain eligible or have access to loans, like Parent Plus. This, in turn, will result in hundreds of thousands of students becoming ineligible for loans in the upcoming years because of poor credit ratings. Read the rest of this entry »
