Student loan availability during credit crunch
Students can still make college a reality even in the middle of a credit crisis. Federal student loans remain readily available to help students and parents pay for college.
Congress established the federal student loan program to help all students access college, regardless of financial circumstance. That means that students and parents can qualify for federal student loans regardless of credit score, income, assets, or collateral. Federal student loan interest rates are fixed by federal law so families won't pay higher rates in a troubled economy.
Sallie Mae is ready to make federal student loans to every student who needs one at every school across the country. Sallie Mae issued a news release affirming this commitment in June.
With a little bit of planning, college can be in a student's reach, no matter the state of the economy. The same wise advice still applies when it comes to answering the question, "How can I pay for college?":
- Complete the FAFSA.
- Apply for private scholarships.
- Get all of the grants and scholarships you can.
- See what you can contribute from savings and income.
- Consider asking your school about paying in monthly installments.
- Explore federal student loans for the student — and for the parent.
- Fill in any remaining gaps with private loans.
Interview an expert
To schedule an interview with one of our experts on planning and paying for college, contact Erica Eriksdotter at (703) 984-5628. Media inquiries only, please.
Related topics
Saving for college
Applying for financial aid
Maximizing education tax benefits
Evaluating financial aid award letters
Visiting college campuses
Last-minute financing
Managing student loans