Financial Meltdown - Ripple Effects?

The financial pressures on America’s families continue to mount. Recently President Bush stated that one of the areas impacted by the current financial crisis was “a family’s ability to borrow money for college.”

At the highest levels of our country, borrowing money to finance college is a NECESSARY and ACCEPTED practice.

The current economic climate in the U.S., with the subprime crisis, escalating foreclosures, and inflationary pressure on gasoline and groceries, has placed a greater strain on the family budget than ever before.

32% of families use “home equity” loans to pay for college. These loans (and, in fact ALL loans) will now be made at much higher interest rates; AND will be higher to families who have credit scores under 700 !!

Where can families go for assistance in finding a reasonably-priced college, while reducing student debt??

High School guidance counselors are really limited in their involvement with families about finances; AND colleges are really of little use beyond suggesting submitting the FAFSA (Free Application for Federal Student Aid).

Many families have used College Assistance Plus (a nationwide firm) who specializes in assisting families with the entire college process, while emphasizing the reduction of college loans.