Yes, scholarships are amazing. Still, many students rely on federally subsidized loans to make ends meet in college. The caps for such loans are often set between $3,500 and $5,500; when this isn't enough, students must turn to private loans, which almost always have higher interest rates.
As a student, I had to take out a private loan to handle the higher cost of out-of-state tuition. While I don't regret attending my alma mater, I wish I tried harder to establish residency in the state. Today, my private loan rates make me cringe each month.
With the current credit crunch, private loans for students are becoming more costly and difficult to access, according to a report on NPR. Those wanting to attend for-profit schools and trade schools have been hit first. For students, the unstable credit market translates into more stringent restrictions on credit scores for interested borrowers and in some cases, less available private loan options altogether.
So does this mean no college (or no more college) for you? Not necessarily. But it will force you to more closely examine which schools you can afford to attend. If anything, the credit situation should really encourage you to look at the programs offered in your state--maybe you won't have to go as far as you think for school. Check out this brass article for more information.
It may make sense to attend college in your home state first, and then transfer to that perfect school out of state once you know what degree you want. Coming from someone who wishes she had thought a bit more about this herself, it's worth it to evaluate your options--not just on where you're going and for what degree, but on how you'll tackle the tuition costs too.
-- Sarah
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