The fact that university students are going to face difficulties getting government financial assistance will mean that more and more university students are going to be forced to get credit elsewhere. Getting financial aid from non-governmental financial institutions will result in students paying more and more money in terms of interest rates charged on money borrowed.
With students set to seek financial assistance from private financial organizations statistic prediction see the average debt per student surpassing the U.S. 25 000 mark more than that of last year. If these statistic predictions are going to be true the year 2012 will see more and more students deferring their loan repayments.
2012 will see student debts increase even further as congress is considering cutting financial aid. This is definitely going to have a negative blow on students that are in university as this form of financial aid covers for about 38% for a student’s education costs in a 4 year program.
According to the statistic reports on student loans the most affected will be newer students who will be faced with a tougher chance of securing financial aid in their studies. The fact that the government is considering cutting down the amount of financial aid given to university students will make it further impossible for new students to get government loans.