Bleak economy hits students
Recent goverment bailout plan has not yet made lenders more willing to help students with money troubles.
Andrew Hart
Issue date: 10/14/08 Section: News
The historic $700 billion economic package signed by President Bush on Oct. 3 has had little effect on the trends of Wall Street-the Dow Jones is still dropping and investors are scrambling.
But the economic turmoil has had major effects on the attitudes of students.
"They didn't have the money to give me the loan," said frist-year Teryn Richsmann.
The week school started Richsmann was informed she would not receive a loan from one of the private loan companies that had agreed to do so earlier.
Richsmann said she was not happy about the missing loan-money that was intended for books and school supplies.
Instead, she was forced to use money from earned from her summer job.
Other students have had to make more difficult accommodations.
"I definitely have to work two jobs just to make rent," said junior Rochelle Gordon.
Her economic woes stemmed from the face that her loans were not offered again.
Even with hard work, not all students have been able to get out of the red.
According to Director of Student Accounts Judy Dehnel, 431 undergraduates will have their online accounts be placed on hold Oct. 14 if they do not have an arrangement with the Student Accounts Office.
These undergraduates owe $500 or more to Hamline.
Dehnel says the number of non-paying students increased by 110 from 321 a year ago.
Although Dhenel says the increase of students in debt at Hamline cannot be explained to the collapse of the lending markets entirely, she believes it is a contributing factor.
While some students are able to deal with debt now, others are thinking about the future.
Senior Nick Levenhagen noticed a jump in the percentage rate of the loan he was able to obtain.
Levenhagen said his $6,000 loan turns into $18,000 by the timehe makes all the minimum payments.
Other students are in similiar situations.
"Now I need to figure what I'm going to do from here on out," said first-year Anna Smithberger, when contemplating how she will deal with a dry college fund and a need for funds for next semester.
But not all students have been affected.
"I do have student loans and it hasn't effected me yet," said senior Tim Schmitt.
But the economic turmoil has had major effects on the attitudes of students.
"They didn't have the money to give me the loan," said frist-year Teryn Richsmann.
The week school started Richsmann was informed she would not receive a loan from one of the private loan companies that had agreed to do so earlier.
Richsmann said she was not happy about the missing loan-money that was intended for books and school supplies.
Instead, she was forced to use money from earned from her summer job.
Other students have had to make more difficult accommodations.
"I definitely have to work two jobs just to make rent," said junior Rochelle Gordon.
Her economic woes stemmed from the face that her loans were not offered again.
Even with hard work, not all students have been able to get out of the red.
According to Director of Student Accounts Judy Dehnel, 431 undergraduates will have their online accounts be placed on hold Oct. 14 if they do not have an arrangement with the Student Accounts Office.
These undergraduates owe $500 or more to Hamline.
Dehnel says the number of non-paying students increased by 110 from 321 a year ago.
Although Dhenel says the increase of students in debt at Hamline cannot be explained to the collapse of the lending markets entirely, she believes it is a contributing factor.
While some students are able to deal with debt now, others are thinking about the future.
Senior Nick Levenhagen noticed a jump in the percentage rate of the loan he was able to obtain.
Levenhagen said his $6,000 loan turns into $18,000 by the timehe makes all the minimum payments.
Other students are in similiar situations.
"Now I need to figure what I'm going to do from here on out," said first-year Anna Smithberger, when contemplating how she will deal with a dry college fund and a need for funds for next semester.
But not all students have been affected.
"I do have student loans and it hasn't effected me yet," said senior Tim Schmitt.
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