So, you’ve all undoubtedly heard about the recession we’ve gotten ourselves into. Unfortunately, even though you probably don’t have a home mortgage, or have thousands of dollars in one of the investment banks that went under, you’re still going to run into credit problems plaguing not only the United States, but most global economies. Most of your college loans are probably through the government, although I know plenty of friends who have loans through private companies like Sallie Mae or My Rich Uncle. (Sidenote: I had a loan through My Rich Uncle and they are pretty solid!).

This year, colleges in the United States hit a record number of applicants. Mix this with a record number of lenders going under (27 so far), and you’ve got quite a mess. However, if you’re holding your breath wondering if your loan is going to go through, you can breathe.

Unlike the bickering that takes place among politicians on what to do with the investment banks, Uncle Sam has done well in not only acknowledging the importance of student loans, but also in taking measures to help. If there is any gap in the funding needed by students and the funding available, the Department of Education will fill the void.

So what should you do?
Well, as this article CNN.com advises, you should stick with borrowing money from the government. Not only is it pretty much guaranteed, the credit requirements are usually lower as well. However, the only drawback is that you have to fill out the excruciatingly long FAFSA form, which I’m convinced in the next few years will ask you what you ate for dinner.

Also, before this year, a college freshman could only borrow $3,500 a year. Now, recognizing the need for more money, the government has upped that amount to $5,500 a year, and every year you can borrow more money. Sophomores can borrow up to $6,500 and college juniors and seniors can borrow up to $7,500 a year.

How do you find out which government program or private lender is best for you?
Well, even though SimpleTuition.com spams my inbox, they have pretty good resources for comparing loans, as does Student Loan Monkey.

More questions about loans?

E-mail us, and we’ll research all the options and try to help you out.

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