More from the Education Desk

This should have some pretty darned interesting ramifications. It has been my belief that by subsidizing credit, the feds are the primary reason why colleges can raise tuition and fees with impunity. If the loan market dries up, colleges will either have to dip into their own vast coffers to increase scholarship dollars or freeze/cut tuition.

re: "dip into their own vast coffers to increase scholarship dollars or freeze/cut tuition."

At the best endowed hyper-expensive schools such as Harvard, Penn and Stanford its already the trend. In fact, Stanford recently up the ante further by making tuition, room and board free for anyone with a family income under $60K.

BUT what about all those people who are positioned for say $5K a year, where the responsibility is shared between parents and kids summer & work study jobs, with the balance topped off by government loans?

or specific to HSBBW, what about partial scholarship players (95% of them), without other available funds... and who can't take a job because team time commitments won't allow it.

Near term... many kids may get squeezed out completely until this sorts itself.

Its not like most schools will accept an unsecured promise to learn now and pay later.

FYI: Here is how Stanford can do it:

Top 40 University endowments per student.

Note : John Mayberry Jr. attended Stanford on an academic scholarship.

WOW!!!!!!!! Never gave a thought before about how the credit crunch/crisis would affect student loans and thereby our little community here at hsbbw but once you read the articles it becomes obvious. How does the D1 roster limit and mandate of 25% minimum scholarships fit into all of this? I am speculating here but it seems to me that more invited walkons with no finiancial grant assistance, except need based and/or academic aid from public or private endowment sources, create a larger market for student loans at a time when present [and apparently continuing] market pressures appear be limiting those companies willing to supply such loans at affordable rates of interest. Even in a best case outcome scenario, with traditional student loan companies leaving the marketplace for other less "risky" capital ventures, basic theory tells us less competition with more demand will likely lead to higher prices for the loans. Of course, worst case would be that even with continued government guarantees [which the article suggests are preceived by the market as less and less credible], the pirvate student loan market dries up almost entirely because of the perceived high market risk and long term yield of such loans. Then what happens?

Let us hope, in spite of the apparent inevitable recession consensus of the experts quoted in the second article, things don't get much worse [though I must confess, given the contemporary political climate and lack of political will, I personally am not optimistic].

TW344

Saw this yesterday, and was very dismayed. Could certainly impact where son ends up going to school--it may not be his first choice no matter how bad he wants it, or what he willing to do for it.

I posted last week that in Michigan that compnay stopped giving educational loans due to bad debt of too many unpaid loans.

Thanks for bringing it back up.