What are the challenges college students are facing today? Students are under a lot of pressure
these days because of budget cuts in education, rising tuition costs, dwindling Federal Student Loans,
hard to obtain private student loans, and to make matters worse, high unemployment graduate numbers.
Today's college students are having to change their anticipated day of graduation, because
California's educational system has been hit with a massive budget crisis. This set back has led to
several campuses having to cut teachers salaries and hours, resulting in some classes being terminated.
Most campuses have reduced student enrollment to compensate for these cuts, thus making it harder for
students to enroll for classes in order to complete their educational goals.
Furthermore, rising tuition prices have left students scrambling to come up with the funds
necessary to pay for their college education. Some students are having to borrow money from family
and friends because loan companies won't help with last-minute rising tuition costs. In addition, others
already with full-time schedules are having to apply for full-time jobs in order to off-set their tuition.
Others are dropping out all together because they can no longer afford their education. According to
cbsnews.com, “At the University of California, which has 10 campuses and about 220,000 students,
in-state undergraduate fees in fall 2010 are set to reach $10,302 - 32 percent more than in fall 2009 and
three times what California residents paid 10 years ago. But at California State University, the nation's
largest public university system with 23 campuses and 450,000 students, resident undergraduate fees
rose 32 percent from fall 2008 to fall 2009 to $4,026, which is nearly three times what students paid 10
years ago. Gov. Arnold Schwarzenegger's budget proposal for 2010-2011 assumes that the system will
raise fees another 10 percent in the coming academic year” (cbsnews).
Coupled with dwindling federal student loans and hard to obtain private student loans, students
are trying to stay optimistic. One example, is the number of low-interest “Federal Perkins Student
Loans” available to students. The government has stopped putting new funds into the program. This
means colleges are able to disperse only the number of “Perkins Loans” that can be funded by, the
paying back of loans by previous recipients. This loan's purpose is to provide college enrollment for
low and middle income students who cannot pay for their education. The repayment of the loans are
used to create new loans. By the same token, parents and students applying for private student loans
account for a large chunk of higher education financing, but because of the current credit market crisis,
loan volume has plummeted. As a result, money borrowed by parents, especially through home...