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Wednesday, 27 August, 2008
Missouri State University students were back in classrooms on Monday. Drury and Evangel university students return to the books on Wednesday.
Many did their homework during the summer months, outside the classroom, to try to make sure they could afford to do their homework this fall. College loans are getting harder to obtain. More than a dozen private lenders, including Bank of America and Citigroup, have stopped or cut back on their student loans.
“Everyone is pressured to find the money for school,” said LaToyia Taylor, an Evangel sophomore from Raytown.
Private lenders say they cut back on offers of student loans because they just don't have the cash anymore. Also, a federal law passed last year makes student loans less profitable for banks.
In 2001, banks issued $4 billion in student loans; last year, the number jumped to $17 billion. Feeling the pinch now are America's youth.
“In order to better yourself, you have to have an education. It's hard with higher prices and the loans,” said Evangel sophomore Suzanne Bauss of Baltimore, Md.
Bauss had no problems paying for her freshman year. That changed this summer with lenders changing their standards.
“It’s a little more stressful than last year; I spent more time searching,” she said.
Bauss was left wondering if she'd make it back to the Show-Me State.
“It crossed my mind but I had my parents help me,” she said.
Eventually, Bauss was able to find a loan for school. In fact, 300 of the 1,800 students at Evangel had to change their loan lenders. Not every story was a success.
“I have a couple of friends who couldn't make it back financially. It's sad,” said Bauss.
As far as how many students won't make it back to Evangel this fall, those numbers are still up in the air.
“It’s too early to tell, to know who's here, how it impacts the upper classmen yet,” said Paul Logsdon, Evangel’s director of public relations.
Some students said Tuesday that they believe the loan situation won't get any better. They believe it'll continue to get worse.
All the universities in Springfield are feeling the same impact. MSU, Drury and Evangel say it'll be a few weeks before the impact on enrollment will be seen, since students are still signing up for classes.
Source: http://www.ky3.com/