Student Loan Crisis: Now How Can you Pay for College?

The credit crunch has already taken many victims during these recessionary times but now parents and students are affected. Sallie Mae the nation’s largest student loan lender has reported very distressing news. They can’t continue much longer to write student loans unless they get help from the Federal government. 

In the first quarter of 2008, Sallie Mae reported a 104 million dollar loss and fell short of Wall Street’s expectations. Like residential mortgages, student loans are packaged into securities and sold to investors. The problem is that amidst our credit strife, the demand for this kind of debt has fallen dramatically even though the majority of student loans carry a federal guarantee and is highly rated.

If the Federal government doesn’t step in soon then parents and students could be finding themselves without a way to pay for tuition. “Our current economic situation has people strapped for liquidity. The cost of living is going up and people are struggling to stay afloat. People have tapped out their credit cards, available loans and salary and are now pushed into a financial corner,” said Ben Peterson author of $500 Startup I want you to be Happy and Wealthy.

The Recession is expected to get worse and now with the troubled student loan industry, a rise in student drop out is expected. More than fifty student lenders have stopped making federally guaranteed student loans until something changes.

“Parents and students need to re-evaluate how they fund a college education. Utilizing the power of the Internet and the twenty-first century, people can create a new revenue source by starting an online business. You can do it with less than 500 dollars immediately,” said entrepreneur and author Ben Peterson. He brings up an important point of finding new revenue streams to help pay the bills. His idea is that parents and students can start an online company even part time and pay for college. That’s as easy as an eBay business to a membership site where you can make an extra 10,000 dollars a month.  His book $500 Startup I Want You To Be Happy and Wealthy is a step by step guide for anyone to start a business built around their passion and do it from home. 

He’s also offering his book for free (digital version) at the following Web site 500DollarStartup.com to help people during these tough economic times. He’s even offering free detailed video tutorials about how to do specific things to start up your company to making tons of sales. These are his tried and tested methods that he uses to create extra money each month. He’s built his companies on these methods. $500 Startup I Want You To Be Happy and Wealthy is a great book and a real solution to our financial problems.

This has been a highly lauded and recommended book that every parent should get to understand how to pay not only for college but all the expenses of just living life.