Decline In Private Student Loans
The need for student aid, from all sources, will continue to increase over the next five years. The availability of non-federal aid and loans has decreased. Private loan originations continue to decline because fewer lenders are willing to make unsecured loans (See Image Above). In addition, State support for funding higher education has declined since 2008, reducing the resources post secondary institutions have to administer Title IV programs. Finally, the American Recovery and Reinvestment Act (ARRA) funds that assisted with State shortfalls expire in 2012. The overall effect of these factors will likely increase the demand for federal student aid in order to offset these reductions.
Categories: College, General