As panic about the financial crisis seeps though virtually every part of American society, it is certain that, eventually, even the most apathetic of groups will begin to get concerned. College students, not particularly known for being in tune with global financial markets, are beginning to ask questions about the global financial crisis. Perhaps the most common question for students: what about my financial aid?About ninety-percent of Aquinas students receive some kind of financial aid, and about eighty-percent receive a form of student loans.

For Aquinas students, the answer seems to be take a breath and relax.

Last year, Aquinas took a proactive step to insure money would be available and switched from the Stafford Student Loans to the William D. Ford Direct Loan Program. The Stafford program is the part of the Federal student loan program in which the money comes from a private lender and goes to a student. While the program is regulated by the government and, in the case of subsidized loans, the interest is paid by the government; the capital for such a loan originates from a private source.

Under the Ford loan program, virtually all rules and regulations about eligibility and the amount a person may borrow are the same. The difference between the two programs being that, under the Ford program, money originates directly from the federal government.

David Steffee, Director of Financial Aid at Aquinas, points out that the decision was made after several banks began to withdraw their support for the Stafford program. This was a signal that private capital might be harder to obtain during the 2008-2009 academic year. Steffee said, “I felt it was in the best interest of the students to make the switch to the Ford program and make sure the money was there.”

Aquinas students also need not worry about their institutional scholarships. Steffee points out that the college uses conservative estimates to figure out how much money will be available from the interest earned from the endowments each year. Even in a market like this, the money is still there.

His advice to students in this, or any other economic situation? “Borrow as little as you need.”
For the moment at least, Aquinas students seem to be following his advice. Studies show graduates of Aquinas, on average, have about $5,000 less debt than other public and private college students in Michigan.

Treasury Secretary Henry Paulson noted Friday as President Bush signed the extension of the Ensuring Continued Access to Student Loans Act, “The Administration is moving aggressively to support the continued availability of funding for federal student loans…with the goal of restoring the government guaranteed student loan market to normal operations.”

Thankfully, Aquinas prudently took steps to insulate student loans from the current credit situation incited by market fluctuations, and though the economic “downturn” will affect future job markets, Aquinas students will have a chance to cross that bridge when it comes.