Obama Promises Aid to Struggling College Students in Michigan

Student Loan Girl — Mon, 23 Jun 2008 20:43:00 GMT

Showing his support for college students in Michigan, the state with the nation’s highest unemployment rate, democratic presidential candidate Barack Obama listened to Wayne County Community College students talk about their struggles of trying to balance rising college costs and high fuel prices, according to an article in The Washington Post (“Obama Promises Tuition Tax Credit,” June 17, 2008).

Obama met one-on-one with Marilyn Pace, a dental hygiene student, who broke down in tears as she relayed how she was falling behind in school payments after paying $4-a-gallon for gas to get to campus. The senator encouraged Pace, telling her that she would “be cleaning teeth in no time,” while promising students at the event that he would help them pay for school with a $4,000 tax credit.

Students who devote 100 hours of community service would be rewarded with a $4,000-credit to help pay for college tuition and fees. The program will cost approximately $10 billion annually, according to the Obama campaign.

“This isn’t an issue you hear Sen. John McCain talk about much,” Obama told The Detroit News when speaking about financial aid for college students (“Obama Comforts Student in Taylor, Promises College Aid,” June 17, 2008). “It’s not just that he doesn’t have a real plan to make college affordable. It’s that he has voted time and time again to stop us from making college affordable.”

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Student Loan Snapshot: Who Wins, Who Loses?

Student Loan Girl — Fri, 06 Jun 2008 23:02:00 GMT

College administrators, students, and parents have expressed concern over the last few months that students may not be able to readily get the funds they need for college this fall in light of the $21 billion cut in government subsidies to federal lenders and the effects of the sub-prime mortgage crisis causing over 103 lenders to leave the Federal Family Education Loan Program.

In response to these concerns, Congress passed the Ensuring Continued Access to Student Loans Act last month to help stem the exit of lenders from the FFEL program and increase access to student loans.

While the extent of the act’s effectiveness in increasing the availability of student loans remains to be seen, many students may have a more difficult time getting the money they need for school this fall according to an article in The Washington Post (“Loan Programs Will Leave Some Students Behind,” May 25, 2008).

Community college students and those students attending other two-year institutions, may face the most challenges getting student loans now that some of the largest student loan lenders like JPMorgan Chase and Citibank no longer offer loans to these types of schools.

Independent students with low or moderate credit scores and no co-signer will have a harder time securing private student loans, as lenders now enforce more stringent credit requirements and demand credit scores of 650 or higher to qualify.

Dependent students, especially those returning to school, that have decent credit will likely be able to find enough federal financial aid. Chances are, though, they’ll pay higher fees than the previous year and may have to find new lenders to replace those that have withdrawn from the FFEL program.

Parent borrowers with minor financial delinquencies will still be able to qualify for credit- based PLUS loans. However, those with "adverse credit histories," or those who have a foreclosure or bankruptcy on their credit history, may have to wait up to five years before they can borrow again.

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Student Loan Blog : The Washington Post

Obama Promises Aid to Struggling College Students in Michigan

Student Loan Snapshot: Who Wins, Who Loses?