As the economy continues to worsen, its effects are being felt everywhere — from the home to the classroom.
Now, thousands of college students who are looking to borrow money for school are feeling the strain. Ashley Teupell is a student at Central New Mexico Community College and a mother.
She said financial aid is the key to a better life.
“If I wasn’t able to get financial aid,” Teupell said, “I wouldn’t be able to continue my schooling and provide for my family and kids.”Not only does financial aid cover the costs associated with education, but it also pays for things outside of the classroom, like transportation and even food.Kori Garcia, who also goes to school at CNM, said, “I use it for books, anything that we need for our everyday lives.”But a nationwide credit crunch and slowing economy are forcing many private lenders to stop offering student loans, leaving some students searching for a new lender.Lee Carrillo is the director of financial aid at CNM.”The Bank of America dropped out of the program from New Mexico, so we’re having to shuffle students to use other lenders,” Carrillo said.Carillo also said other private lenders are now requiring borrowers to have a co-signer with excellent credit.The new requirements are causing headaches for many students.Teupell said, “You have to keep going to different resources and they keep just turning you down.”According to officials at Central New Mexico and the University of New Mexico, not too many students have been affected so far.
However, Carrillo said if the economy continues to worsen, “We’re going to see a lot more lenders probably drop out, that will affect the institutions in the state of New Mexico.”
Officials say the number one thing students can do to secure financial aid is to apply for it early.
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