Students and the Recession; keys to obtaining a college loan in this down economy

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Students and the Recession
Keys to obtaining a college loan & finding a job after graduation in this down economy
By Christina Sochacky

Based on things we hear in the news, credit is extremely hard to come by due to the struggling economy. So what does that mean for students in need of a college loan? Is there federal money still available?

The federal government has extended the availability of its student loan money though the 2009-2010 academic year. For those who qualify, the money from federal funding is obtainable until at least 2010.

According to a published report, the federal government has changed some of the criteria that govern how lenders profit from making loans available to students and their parents. Many lenders are concerned about whether it would be profitable for them to take funding out of mortgages, car loans and other investments and put them into student loans.

Earlier this year, the federal government stepped in to pass legislation that guarantees all federal-based student and parent loans remain available through the 2008-2009 academic year. Since then, Congress has taken another step to make sure there is funding available through the following academic year as well.

Many OSU students are fearful they may not be able to obtain a college loan and their education will have to be put on hold. Senior Felicity Myers has first-hand experience with the changing loan criteria. “I have noticed, for me personally, through my college experience how it has gotten harder to get a loan,” she said. “I guess in some cases that is understandable, but as a college student trying to get a degree so I can get a job, it can get frustrating.”

Students and parents can finally put their mind at ease knowing they can obtain some type of student loan. According to a published report, as long as a student meets the eligibility rules, he or she will be approved for a loan.

Before you apply for any student loans, all students must complete the FAFSA form. This form will help the college determine eligibility for a loan and also what types of loans a student may qualify for. There are also other financial options available to many students other than loans, so be sure to check with your academic institution- especially if your original financial situation has changed since completing this year’s FAFSA information. Most schools will apply scholarship and grant eligibility first and many also offer work study opportunities.

In addition to scholarships, grant money, student loans and other alternative funding, there are a few ways to help lower the cost of a college education.

Many colleges provide scholarships to children of employees, and other colleges may offer financial support for children of alumni. If there are children in the family close in age attending the same college, sometimes they qualify for a two-for-one deal. You can also consider attending a community college for your first two years in order to lower your tuition costs. Most colleges provide a list of courses that will transfer to a four-year university. Advance placement courses, college level exam programs and other advanced placement tests can help save costs by eliminating the need to take some required courses. Get credit for your knowledge and save time and tuition costs.

One of the biggest questions on many college senior’s minds is, “Am I going to be able to find a job in this down economy and pay off all of these college loans?”

“It is so stressful trying to find a job right now, and dealing with paying off loans just adds to it,” said graduate Sally Torman. “I cannot even imagine college getting anymore expensive; it’s already ridiculous in my opinion.”

According to a published report, the November 2008 report from the National Association of Colleges and Employers, the employment rate for new graduates is expected to be about the same or just slightly below hiring for last year’s graduating class.

Of the employers who responded to NACE’s Job Outlook 2009 survey, 26 percent said they reassess their college graduate hiring needs on a monthly, rather than quarterly, basis. That is a very large shift from last year and in direct response to the state of the economy. About 44 percent of the responding employers said they think the 2009 college job market will be good despite the economic outlook. College graduates should have some hope in securing a job in the near future although competition in some industries is expected to be tight.

Another way to search for a job before graduation day approaches is to participate in on-campus recruiting events. Employers always visit college campuses and students should take advantage of this opportunity. On-campus recruiting is one of the most effective ways of finding qualified candidates, according to employers.

Finding an internship program is also a great way to gain job experience while still in school. Relevant job experience is a great thing to have on your resume and is highly desirable for entry level employees and new graduates.

“The job process can never really be described as a ‘fun process’, however it is brutal now as we all know,” said graduate Jimmy Mitchell. “My only bit of advice is- it is never too early to begin networking and never stop. I ended up with my job through some of the least expected connections. The one good thing about the economy being how it is, is that more than ever people just want to help one another in anyway possible.”

The undergraduate jobs in demand after graduation are projected to be in the fields of accounting, computer science, economic finance and business administration. According to a published report, 60 percent of employers will be looking to hire recent grads with accounting degrees. More than half of manufacturing employers plan to hire this spring. The top five undergraduate majors in manufacturing are mechanical engineering, electrical engineering, accounting, chemical engineering and computer science. At the graduate level, those with MBA’s hold the most promise for employment with nearly 90 percent of employees expected to hire those holding a masters degree in business administration.

Freshman Seth Reno said, “I still have three years or so until I really have to buckle down and get really serious about landing a job. I can only hope that it is a lot better and pray that it doesn’t get any worse. My parents and people I know have told me to do what I can now and throughout college to stay ahead and make that transition as easy and successful as possible. I definitely plan on doing that.”