The economy is taking its toll on the student loan industry. So much so, some students won't be going back to the same school in the fall.
Lauren Cook is preparing for her senior year at Ithaca College. She uses private student loans to finance her education. Lauren says, for the most part, getting loans has been easy, especially with the help of her parents as cosigners. But then she hit a roadblock. Both of her parents credit got denied.
Doctor Ken Hartman from Drexel University says Lauren is not alone and says there are hundreds of thousands of students hitting the same brick wall. It's harder now to get a loan than it was even a year ago. The rules have changed. Because of the economy, more banks are getting out of the lending business. And the ones that are left are requiring much higher credit scores before they loan money.
So what's a student to do? Hartman says first, talk to your school's financial aid office. Ask about what resources are available both from the federal government as well as the institution. Lauren's advice to other students is to try and have the best credit rating you can.
Consumer alert bottom line: Always apply for student loans early. And try to get all of your financing secure for the entire year. Another quick tip - look into online classes if possible because they're much more affordable.