Getting a student loan, Is more challenging

Rising tuition fees, coupled with the weak economy, makes it tough for anyone to afford college.

According to the College Board, the average annual bill to live and attend school full time at a four year private institution was more than $32,000 last year. That is $13,000 more than it was just ten years ago.

Nationally, 8.9 million students filed for aid during the first half of 2008. That is a 16.3 percent increase from last year.

The chaos in the financial markets has driven many lenders out of the student loan business altogether, leaving students looking for help wherever they can get it.

College life comes at a cost. Student, Koedy Brant told Action News, "I don't have enough money to pay for my college. I got thousands of dollars in scholarships and Cal grants and federal aid, but it was still not even close to being enough." That is why many college students apply for loans. But these days getting a loan is getting tougher.

"I'm in the process now. It's a long process to get the loan," said student Aileen Carroll. Some institutions have had trouble finding an on-going source of funding for student loans. "That market is the same market that funds our home mortgages and the other sources that have had some difficulty in the last few months," said Cal Poly Director of Financial Aid Lois Kelly.

Those same issues are having an adverse effect on student loan programs. Kelly adds, "What they are finding is that some of the lenders they might have used in the past no longer have the funding source, and so they can't lend to the students."

The student can choose to get a loan from another lender, but that creates another problem. Kelly goes on to say, "Now they have the potential complication of owing two different lenders, needing to be certain that they consolidate the loans so that in the future they won't have to make two separate repayments."

Financial advisors at Cal Poly told Action News there are loans available. Students just need to come in and speak with someone about what is best for them. Advisors encourage any student who needs help paying their tuition to stop by the Financial Aid department. Most everyone qualifies for a student loan.