| With the financial crisis nowhere in sight to get better | | | | news as most people and parents who wanted to |
| would eventually hurt or jeopardize how you can | | | | borrow money for their children to go to college will |
| borrow money for your education. Student loans | | | | not be affected. |
| from some sectors would feel the effects of this | | | | But some other forms of educational borrowing may |
| global financial crisis. With the ongoing finance and | | | | get affected as these banks are having more |
| economic crisis and the Federal Reserve pumping out | | | | stringent policies on who can apply and qualify. One |
| billions or probably trillions of dollars into Wall Street, it | | | | case in point is those foreign students who may |
| is bound to affect student loans and how you can | | | | have a hard time with their budget and cash flows. |
| borrow money for your education. The financial | | | | The rising cost of fuel and food make it harder for |
| sector was hit the hardest since the mortgage | | | | foreigners to cope money wise. |
| collapse and money going in or out of these financial | | | | In some parts of the world the financial crisis does |
| institutions is out of the normal. | | | | have some effects on student loans. For instance, in |
| The crisis or the recession started with the housing | | | | Canada they have a program called CanHelp which is |
| and mortgage collapse leaving many people to file for | | | | a financial aid group that helps Canadians who would |
| foreclosures and bad mortgage loans. You really do | | | | like to obtain college loan. The problem with CanHelp |
| not need to be a rocket scientist to know that the | | | | is that it is backed by the troubled bank Wachovia |
| effects are paramount and gargantuan in scope. It | | | | Corporation from North Carolina. This bank was |
| affects the entire world. And to avert further crisis | | | | eventually taken by Wells Fargo. Needless to say the |
| and get the big finance companies afloat the federal | | | | funds that was flowing to this program suddenly |
| reserve infused an initial seven hundred billion dollars | | | | stops. So you can see that this financial crisis has |
| to stave off a nose diving economy. The US | | | | effects on student loans. |
| government address the crisis by enacting a bail out | | | | On the brighter side of things, the US congress |
| for the troubled banks and finance companies. | | | | enacted the Ensuring Continued Access to Student |
| Because these banks are the issuer of most of | | | | Loans Act of 2008. This will effectively protect many |
| these student loans it may have some ramifications. | | | | families to have access to federal student loans |
| The banks that are in trouble are the ones doling out | | | | during this economic and financial chaos. This would |
| these student and educational loans to students. So | | | | make all these families and students seeking |
| there is the potential that this could affect how you | | | | educational financing more at ease. It also means that |
| can obtain student loans for your books and tuition | | | | you can have access to federal loans without |
| fees. But luckily for some, there is good news as the | | | | worrying about any impediments and hassles. You |
| Stafford Loans under this program will not be | | | | have to be aware though that federal loans like |
| affected because it is guaranteed by the | | | | Perkins, Stafford and PLUS loans are capped so you |
| governments education department. This is welcome | | | | need some borrowings from private lenders. |