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Our economy is crumbling, and things just got worse for Bachelors degree-hopefuls, especially those in Massachusetts. Last year, the Massachusetts Educational Financing Authority secured over $500 million in educational loans. This year, they’ve announced that they will not be offering loans for the upcoming academic year.
None. Zero. Zip. Zilch. Nada. They didn’t cut their $500 million budget to, say, $250 million. They exed the loans altogether.
MEFA secures loans for 40,000 students who live in Massachusetts, or who attend school there. Unfortunately, this year, the financing authority could not secure the money. Executive director Tom Graff blames “disruptions in capital markets.” So, just like that, 40,000 students are sh*t out of luck.
MEFA is the first to make headlines, but any financing authority could also be treading on thin ice. Which means that students across the country could be forced to drop out of college, or sell their souls to finance a degree that can cost upwards of FORTY GRAND per year at top-notch schools like Carnegie Mellon, Tufts, NYU, and Notre Dame.
When I was in college, I played my cards right, and managed to get through my degree with almost no debt, and decided to pursue a Master’s, rather than join the work force right away. With our declining economy, I am currently paying dearly for that decision. Sure, I have a MA, but with hundreds of thousands of workers being laid off across the country, I don’t have the experience to compete. I’ve been applying for job after job, to no avail. Even the number of job openings in dwindling, because companies are being forced to cut corners left and right.
So, MEFA has set up a hotline for students to call, but I’m not sure how much good that can do. It’s a scary time to be a college student in America. Bernie Pekala, director of student financial strategies at Boston College, spoke out about the current MEFA crisis: “[Students and families] have less obvious choices right now. They’re going to have to look at circumstances and try to come up with alternative financing options if they have utilized this as their main option or only option in the past.”
Many students are going to have to put their education on hold. Many others will complete their plans of study, and come out with a deep debt and fewer job opportunities available. I’d like to know if anyone out there is being effected by crises such as lack of financial aid, student loans, or the job market. Of course, there will be a lot of changes for the country soon (e.g. the upcoming election). Hopefully, things will take a turn for the better…asap.
11 Comments
I’ve heard that Obama wants to introduce a $4,000 tuition tax credit in exchange for 100 hours of community service…sign me up at the nearest soup kitchen!!!
About a month ago my financial aid office and Sallie Mae both informed me that Bank of America has decided to get out of the student loan business. Luckily I was able to get my stafford loan financed through someone else, but it wasn’t without the hassle of signing a new master promissory note and hoping that this new institution hadn’t already run out of money to offer me. Ugh.
Oh my god. That is soooo terrifying.
It makes me count my blessings for my scholarships and hope those ARE secure throughout the next 3 years.
For the longest many students thought that college was the way to escape the financial troubles that faced their family, promising lots of open doors once they graduate… Now it only opens one large door to hopelessness.
I’m still waiting to hear if my] loan this semester is going to come through or not and as of right now I have $50 to my name and bills that just keep coming in. My parents pay for my tuition as of right now but they don’t pay anything else like rent, bills, food etc and I’m not sure how long they will keep paying my] $40,000 a year school. I don’t know what I’ll do if I can’t get loans, I don’t want to graduate with a ton of debt and I don’t want to have to drop out, I guess we’re all just playing the waiting game now.
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my undergrad institution cost 50k a year. fortunately, i had several merit-based scholarships so neither my parents nor i had to take out loans. unfortunately, i’m headed to grad school this year with 50k in loans [after my scholarships were factored in] each year for 3 years. if the loan companies fall through, that’s a HUGE problem for everybody. 4k in assistance wouldn’t even touch it. here’s hoping the big loan providers continue to do so.
With two weeks left until my school starts again, I still don’t know if I will be going back for my junior year. Unfortunately my parents are divorced, and currently going through court to fight about my finances. There are no more loans available to me, and my mother has even taken out personal loans that ask for $500 a month. So I’m crossing my fingers that I get some money somehow.
in new jersey, if you graduate in the top 20% of your class, you get 4 years of tuition pretty much paid for (15 credits per semester the first two years, 18 credits per semester the second two). we need more programs like this, its whats pretty much giving me the opportunity to go to grad school, and definitly was a major motivator when i was in high school (i ended up being around the top 18%… so phew on my part).
this was all thanks to governor mcgreevy. he may have been involved in scandals, but i have to say, hes one of my most favorite politicans if for this only
People need to re-consider going to smaller state universities at least for a couple of years before headed out to a 40K a year school… your credits transfer and you save a ton of money… I’d rather pay 3000 a semester than 20,000! Plus, if you go local you have all sorts of breaks and you can work as well. I paid for my own schooling (or what wasn’t covered by my scholarship)and didn’t have to get a loan or ask my parents for help. It’s a smart decision and you’re not compromising on education….every single one of my credits transferred- and I actually had a better English education from Augusta State than I did at UGA.
I meant to say heading… whoops!
FYI my major was finance, not English, I was just making it known that the English program was much more rigorous at ASU.
Ash I am in the same situation, except my father is unemplyed and my mother has borrowed all she can against her retirement, and I am still 2000 in the hole. My school decided to raise the tuition making it over 30, 000 and neither me nor my parents are eligible for private loans. My school’s financial aid sucks a$$. Also I agree Beth, I often wish I opted to go to a cheaper university but I have two years in at my school and nothing going to stop me from getting my degree and going to law school, not even all this b.s. with paying for school. I really believe that the schools, states and federal govt dont understand how difficult they are making it for college students to excel in college let alone attend, we are the future as corny as that might sound and they are hurting “the future” badly, we need support not more bills and less solutions.
I’m feeling the pinch already as well! I’m an entering freshman and despite having merit-based scholarships that offer nearly 100% of the $50,000 price tag of my “dream” school, I’ve had to pay almost $3,000 out of my own pocket for associated costs because PHEAA (the MEFA where I live) has stopped offering loans as well. And the bills just keep coming! My parents can’t do anything to help because things are tight for them too. I suppose this is part of why I’m going to college, so life can be a little easier later on. But it’s definitely a pain now, and it sounds like the end is starting to not justify the means with this ridiculous market. I guess the best I can do is hope the economy is better when I graduate!
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