Credit crunch is squeezing College kids

By Edward Harrison On Oct 2, 2008

If you don’t think this credit crunch is a Main Street event, you must see this video. When a lack of credit availability stops people from getting an education, you have to do something. For those of you watching the equity markets as a proxy for the economy, STOP!

This crisis is about credit. It always has been.

Source
College Loan Fiasco – CNBC

Edward Harrison 7783 posts 575 comments

Edward Harrison is a senior Editor at Bloomberg. He is also the founder of Credit Writedowns newsletter, a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.

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3 Comments

Anonymous says 16 years ago

This might not be a bad thing. Less loan money means less money available for the colleges. Less money available means either the college shrinks, or it lowers tuition. Most colleges would choose the latter. Especially the faculties, which have a lot of influence. Many of the colleges don’t need the money, especially the big ones.

Community colleges are cheap enough to pay for with the Hope credit or the Lifetime Learning credit, so loans don’t even come into play there.

Love the blog, it’s extremely informative.

-Don
Edward Harrison says 16 years ago

Thanks for the comments and feedback, Don. I think schools like my Alma Mater Dartmouth are simply unaffordable for the average middle class family. Without, loans and financial aid many people couldn’t go to those schools.

These schools need the money more than you might think. Tuition doesn’t cover expenses and expenses are rising more than inflation because there are no technological solutions to automate away the increasing costs. Take a look at any University’s budget and you will see what I mean. This is certainly true for the institutions I have seen.

I think we need to make sure loans are in place so people can get an education.

So, Don, let me ask you why you think it doesn’t matter?

Regards,
Edward

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