Hardships of a Rough Economy

By Kim Del Valle
Staff Writer

The financial crisis is taking a toll on our economy. Businesses and companies are facing budget cutbacks and are digging into their savings. In this market meltdown, college is no exception. With student loans and future careers in mind, commencement for this year’s seniors will be nerve-racking.

Tuition costs are rising, and so is the interest on student loans. Access to credit is decreasing as well. According to education experts, more students from private colleges are transferring to less expensive public schools.

Parents are also affected, and they are looking for new ideas to either earn more money or slash any unnecessary expenses. However, there are reforms underway to reassure them that college is indeed affordable.

But how did the economy get in such bad shape? The housing market played a big part when prices rose abruptly and crashed, meaning that houses weren’t worth as much as they were appraised.

Evidently, this left bad mortgages as well as loans that couldn’t be paid off. This plays off new graduates because now they will have difficulty obtaining their first home loan.

Another contribution to the economic crisis is due to banks. They’re suffering because there isn’t money coming in, which means they can’t lend any out. So basically, banks are suffering from the lending deficit.

Since these institutions provide student loans, those who depend on them are taking a hit. The financial mess is also due to reinvesting as well as shorting stocks, which led to the gas crisis.

However, on October 3rd, the U.S. House of Representatives passed a long-awaited bailout proposal, which was then signed by President Bush. The $700 billion legislation hopes to bail out Wall Street firms as well as ease the crisis of credit and the U.S. economy.

An alternative to student loans is federal aid. If you haven’t so already, applying for it can help since it doesn’t have to be repaid. For more information, visit fafsa.ed.gov or studentaid.ed.gov.

Companies are struggling to get credit loans, which means no jobs, making the market even more competitive.

Luckily, Career Services are beneficial to aiding with the future of students after graduation. Career Services advise students to create resumes and cover letters that would impress employers. So basically, sell yourself by displaying your experience, skills, and accomplishments. This way, you can better your chances of getting called in for an interview.

Appointments can be made and packets are available in the Career Services office. They can advise you on resumes, cover letters, and practice mock interviews. They are located in the Liberal Arts Center, room 224. The office hours are Monday-Friday 8:30 am to 4:30 pm.

The next administration will have to make some difficult decisions next year concerning campaign promises about taxes and spending, regardless of who gets elected for the next term.