Recession in our future? What does it mean for students?
A few weeks ago, I was at a dinner party, meeting new people; I introduced myself as someone who works with college students promoting financial literacy and financial responsibility. We were sitting around the table, waiting for the next course, and one of the women asked me whether I thought that the sub-prime mortgage crisis was affecting students and their finances. At that time I answered no - but now I'm not so sure. Recent speculation about a possible recession affects all of us - and soon-to-be-recent college graduates perhaps most of all. You even hear it from MTV - and once MTV and other popular cultural folks start chiming in, maybe there is no turning back. From NASFAA (National Association of Student Financial Aid Administrators):"Well, there's been a lot of talk about a possible recession starting in late 2007 or early 2008 - and for good reason," MTV reports. So what does this all mean for college seniors? You can read the complete article on-line":
http://www.mtv.com/news/articles/1582672/20080303/id_0.jhtml
Anyway, back to that dinner party. The second part of my answer - after no, I didn't think that sub primes would necessarily affect students, was that I did think the current crisis with student loans would probably affect our students more. This is backed up by several recent articles, one included here, also from NASFAA :
"A report released by the National Consumer Law Center highlights the problem faced by students and recent graduates: steep tuition increases force students to take on more and more debt from private lenders. Then, a tight job market makes it hard for them to pay the loans back," Minnesota Radio reports."
http://minnesota.publicradio.org/display/web/2008/03/05/loantroubles/
posted by Dawg Dollars @ 9:40 AM
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