College Admissions: Hard times to get loan

Temple University junior Reava Potter never expected the crumbling housing market to affect her college education.

But the fallout has led to a credit crunch that has made it harder for students like Potter to get the student loans she needs.

"What is now happening in our economy has made it harder to take out a loan and it now takes a longer time to get a loan than normally," Potter said. "They have such high standards for credit that it’s ridiculous. I can’t do it myself, and my parents can’t do it due to their credit score. It’s almost impossible."

A spokeswoman for Sallie Mae said some loan companies have stopped giving to students altogether.

"Some lenders have stopped providing private education loans due to the credit crunch," company spokeswoman Patrica Nash Christel said. "[They] have dropped out of the federal student loan program or cut back on the types of schools they would lend to."

Despite the problem, Elizabeth Reap, director of student financial services at Temple, said she has not seen a real influx in students not coming to Temple due to financial dilemmas.

But another finance official at the university said incoming freshmen classes are increasingly made up of higher-income families.

"Too many people want to come to Temple. Tuition raises yearly to keep up with inflation technology and other schools. It’s hard to see Temple doing anything like that," the official said, referring to lowering tuition for students who can't get enough financial aid to pay for Temple.

While Potter requested a certain amount this year, she said loan companies are being stingier than in the previous three years.

"Now, I have to find another loan to cover my other expenses," Potter said. "It’s frustrating and especially for students who are trying to better themselves. This should be the last of my concerns."