Declining social conditions of students and youth in the US

The seizing up of credit markets is beginning to take a toll on the availability of student loans. In the fall 2008 semester financial aid officers around the country reported that some students have been forced to drop classes, change to part-time status, or even drop out altogether because of inability to obtain adequate loans.

While federally subsidized Stafford loans are still available, they are woefully inadequate for tuition at even public colleges and universities, much less so at their private counterparts. According to the College Board, the average tuition is $6,185 at public schools and $23,712 at private schools. Stafford loans are capped at between $3,500 and $5,500.

Because Stafford loans cannot by themselves cover expenses, most students are forced to take out additional, private loans. Such loans carry higher interest rates—Sallie Mae’s average private loan rate is 12 percent—and are more difficult to get. As tuition costs have risen over the last decade, the private educational loan industry has ballooned almost 900 percent. In 2006 the dollar amount of loans in this industry totaled $18.5 billion.

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http://wsws.org/articles/2008/nov2008/stud-n12.shtml