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Health reform passes hurdle in Senate
U.S. courts and tribunals have separate set of rules
Hasan to stay in confinement till court-martial
Technology aims to keep drivers' attention on road
Wall Street finds profit in the mortgage mess
Palin attracts big crowds, rekindles campaign spirit
Historic health care bill nears key Senate vote
Most Read Stories
Police accuse bank robbery suspect of gobbling up note (with dashcam video)
Man found dead in North Akron home is identified
Dad accused of forcing son into field, killing him
Coventry man killed in crash at I-77 ramp
NFL star Chris Spielman's wife loses cancer battle
Browns' roster nearly devoid of consistent players
College student mistaken for deer, shot to death
Blogs:
Pets:
Cat-loving chihuahua suckles seven abandoned kittens
The Heldenfiles:
Friday Night Notebook
Patrick McManamon:
For your Saturday entertainment …
Akron Zips:
Hitchens leads Zips in second-half comeback
Tribe Matters:
Seven players added to Tribe’s 40-man roster
Cleveland Browns:
Holmgren expresses interest in Browns position
Kent State Sports:
Kent State blown out in second half, loses to Temple 47-13
Cleveland Cavaliers:
Gameblog: Cavs vs. Philadelphia 76ers
Buckeye Blogging:
OSU – Michigan college football rivals meet in Baghdad
Varsity Letters:
Four area football teams play tonight
All Da King's Men:
Headed For Disaster
Blog of Mass Destruction:
Will Health Care Reform Pass?
Akron Law Café:
Health Care Financing Reform: (68) Democrats Secure 60 Votes for Cloture
See Jane Style:
Vintage Chic
Car Chase:
TIME TO GET YOUR COLLECTOR CARS WINTERIZED
Let's Talk Real Estate:
Silverdome Potentially SOLD!
Ohio Travels with Betty:
George is looking for a Thanksgiving buffet in Akron.
Sound Check:
Steely Dan Plays "The Royal Scam" at E.J. Thomas Hall
HRLite House:
Colloquium at University of Akron
Akron Gamer:
Nintendo's Mario endures even as games come and go
Sallie Mae decision follows market turmoil, comes as request for aid rises
By Tony Pugh
McClatchy Newspapers
Published on Sunday, Oct 26, 2008
BLOOMINGTON, IND.: On a recent Thursday evening, Neal Theobald, Indiana University's vice chancellor for budget administration, received a sobering letter from Sallie Mae, the nation's leading source of student loans.
''Because of the continuing turmoil and uncertainty in the credit markets, Sallie Mae has made the difficult decision to tighten the underwriting on all our private student loan products, which will require applicants to meet higher credit standards. We believe that this action will mean lower approval rates for these loans,'' Sallie Mae Executive Vice President Barry Feierstein wrote.
The lender also announced plans to ''adjust'' or raise its loan pricing.
''These decisions were not easy to make,'' Feierstein wrote, ''but the current financial markets provide no other choice.''
At a time when student financial-aid requests nationwide are up 16 percent from last year, Sallie Mae's decision to make fewer loans at a higher price will deepen the financial pain of millions of parents and students who are struggling to pay for college educations.
It's the latest example of how the Wall Street crisis is digging into the pockets of Americans who are far removed from New York's financial district.
Historically, when the economy starts to tank, students return to higher education in greater numbers.
''But with the credit crunch and money tight and the economy so bad, I think it's going to be difficult for students and families to pay that college tuition,'' said Roger Thompson, Indiana's vice provost for enrollment management.
''I talk to parents fairly regularly, and they're struggling,'' he said. ''Their kids are down to the last semester or two, money's tight and they're worried about their jobs, and they're just hoping they can get their kids the rest of the way through.''
Amanda Daugherty, 24, was just a toddler when her father died, and she was still in high school when ovarian cancer took her mother's life.
Now only two months shy of her master's degree in public health, the Lafayette, Ind., native owes nearly $70,000 after financing almost all of her six-year college education with student loans.
The size of her debt first hit Daugherty last year after she received, for the first time, a bank statement that tallied all her loans, which then totaled nearly $60,000.
''I kinda freaked out,'' she recalled. ''I saw it, and my stomach just turned. It almost didn't seem real. Fifty or sixty thousand dollars? I'm like, 'Really? I racked up that much?' . . . It's so overwhelming. It feels like I'll never be able to pay it off. How am I ever going to be able to buy a house?''
Her more immediate concern is finding a position in the ultra-tight job market. Daugherty's already applied for more than 15 without success. She wants to work for a nonprofit agency, but she fears that the troubled economy may be conspiring against her.
''I think there's going to be cutbacks in funding and I feel like people won't be as willing to hire new people into organizations,'' she said. ''I'm getting really scared because I don't know what to do if I can't pay. I mean if I don't have a job, can I claim financial hardship? I really don't know.''
BLOOMINGTON, IND.: On a recent Thursday evening, Neal Theobald, Indiana University's vice chancellor for budget administration, received a sobering letter from Sallie Mae, the nation's leading source of student loans.
Get the full article here.
Comments
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Akron, OH
Posted 08:41 AM, 10/26/2008
No worries here in Akron. Our city hall hero has guaranteed us that, once he leases the sewer system, that our children will receive whatever is needed in college loans.
The traditional loans, grant and scholarships can all tank, and Akron will have an abundance of money for our childrens scholarships.
Of course, there aren't any jobs here, and these fortunate children have to pay back their loan and then some.
Stow, OH
Posted 02:51 PM, 10/26/2008
Just one more way to keep the middle class in its place and keep us from advancing.Sooner or later only the rich will be going to college because the high paying jobs of the middle class are quickly evaporating .
