Entries for October 2008

Alan, a U.S. citizen studying at the University of Kassel in Germany, asks:

"I am growing quite desperate. I am looking for any type of aid that I can find.... I have an available cosigner with good credit, yet so far I have been unable to find any private loan. My school is not able to receive federal funds. After countless hours of searching and asking, I have found nothing. I am also not the only person in my situation. There seem to be many Americans abroad who face the same financial issues due to the current economic troubles. We are running out of options and have nobody to help us. Well, frankly...it sucks."

While the financial situation is looking a little grim for U.S. citizens studying at overseas schools that are not approved by the Department of Education, it is not entirely hopeless. Students who are willing to transfer, or get creative, might find ways to finance an overseas education.

In the midst of financial turmoil, three small pieces of good news for students have emerged. Texas A&M, Boston University, and Vanderbilt have each announced hefty increases in their financial aid generosity in recent weeks.

That brings to at least 53 the number of schools that have made some sort of public pledge guaranteeing an affordable education to low-income students. A fairly comprehensive list of the pledges can be found at the Project on Student Debt's website.

As details of a massive financial bailout are being hammered out in Washington, D.C., some educators are asking: Hey, what about college students? Senate negotiators raised the prospect of a little help for anyone facing tuition bills by slipping into the new bailout bill an extension of the tuition tax deduction that was set to expire at the end of this year.

But advisers gathered at last week's Seattle conference of the National Association of College Admissions Counselors said they are worried there are lots of students who are in just as much financial trouble as overextended homeowners, as rising student loan default rates indicate. The average college graduate owes almost $20,000. And many leave school owing more than $50,000. With today's economic troubles and growing unemployment, more young graduates may have trouble making their payments. So, if Congress is contemplating bailing out mortgages, college advisers are asking, why not student loans?