Lack Of Lending Hurting College Students

Janella Rogers, College Student
Janella Rogers, College Student
Kay Mooney, Director of Financial Aid at Amarillo College
Kay Mooney, Director of Financial Aid at Amarillo College
Andrew Fiero, College Student
Andrew Fiero, College Student

Students are being forced to scrap their plans for college due to lack of loans. The credit crisis is crunching every aspect of the consumer world.  Especially one group that can't afford a shortage of funds, college students. Amarillo college is doing what they can to help students get into college with all the assistance they can get.

Amarillo college has 10,000 students enrolled and half of those students rely on financial assistance. College student Janella Rogers, says she has had first hand experience. "I've had some friends get 2 to 3 loans to cover expenses for one semester", she said.

The fight to fund a future is getting harder for students to handle with the federal government cutting billions of dollars in subsidies to lenders. Those lenders make federally guaranteed student loans. Director of Financial Aid at Amarillo College, Kay Mooney says they have seen lenders leave their college. "We are hearing about a lot of lenders pulling out. We had two lenders here in Amarillo local pull out. They're not doing community colleges (any more)," she said.

The lack of lending is forcing students to look for alternatives. Freshman Andrew Fiero, says not having a loan is one less thing to stress about. "It's really a relief for me seeing that I don't have to pay back nothing like that... loans," Fiero Explains.

Students and college officials both agree a crucial part of financing college is the free FAFSA (Free Application for Federal Student Aid). The FAFSA is a starting point to link programs, grants and scholarships to keep you from relying on loans.

Mooney says the Amarillo College use loans as a last resort, "We will get information from the federal processor. Then we look at what federal government says their (student) eligible for, which we look at grant scholarships first".

Some students are exhausting their effort looking for funding some of them a faced with a costly choice. Rogers says "I've had friends that completely drop school because they have no way to afford college.

All local colleges advise students to start applying for financial aid as early as possible to get the most funding for the upcoming school year.