With the overall credit crunch, even student loans have become a commodity that is hard to come by, especially when it comes to government or bank funded, purposely low interest loans that were the given only a few years back for students who wanted to start attending college but did not have the cash means or the credit means to effectively start going without a large funding source to pay for the increasing tuition and other expenses associated with attending aa higher education facility.
So, what started happening is that colleges themselves started their own, in-house student loan programs where they could lend money directly to the students themselves. Sounds like a great idea, but what ended up happening is that often times students would not be getting those great student loan interest rates of years past with these in house loans, instead they would be getting charged interest rates as high as 18% – heck even some credit cards are better than that, even the fixed low interest credit cards are much more competitive than this, so some of these students conceivably could have gotten a better deal by charging their tuition and books, which is a totally ludicrous and sad notion.
The reason this is especially disturbing for many students is that they are still going to be stuck with huge high interest bills when they graduate from college, but they also have the added burden now of graduating into a tanking economy and a horrible job market where, not only will a job be infinitely difficult to find, but also they will not be able to find jobs that pay as well for their chosen fields most likely since a lot of employers are even scaling back on their pay scales to help make up for lack of profitability.
This compounds the pressures on newly graduated college students, and the fact that their interest on their student loans may be astronomical only adds fuel to the fire and makes it more difficult for them to stay afloat. Also, with more and more people attending higher education now, the competition is fierce out there, as it seems more and more people are getting their master’s degrees, and so on and so forth, so these institutions that hire for people who are more highly educated are going to have a lot larger of a lot to pick from than they did before, which means you have to stand out and do your best even more so than you did before.