Economy Spells Trouble for Education

While lawmakers try to decipher the economy mess, an article by Justin Pope from the Washington Post realizes that students and families wait anxiously for solutions. This year’s high school graduating class of 2009 will send “the greatest number of graduates on to college in American history” with the greatest worries about the economy and their own financial situation. Parents want the best for their kids, but find themselves at a loss to cover the rising costs of tuition and living expenses.

There are many factors contributing to parents’ financial worries. Some have recently lost their investments in the stock market when it crashed to all time lows, depleting their retirement as well as college savings funds. Others may have problems applying for financial aid because although they are might have been eligible in previous years, this year schools who do not have access to large endowments are struggling to support the mass of incoming freshman with financial need. Robert Shireman of the California-based Institute for College Access and Success says “a lot of other colleges will find it hard to provide the same level of aid as in the past.”In addition, because of sinking housing prices, “many families can no longer count on the equity in their homes to help them pay for tuition.” Educational loans are also becoming hard to find as more and more banks close and even the loan interest rates rise. Personally I was lucky to obtain a low interest loan for my undergraduate education for one year from Wachovia, but with the economy, and sale of Wachovia, I along with many others will be trying hard to find another way to pay for education.