There are three categories of Students loan in America. Two of this was formed in the legislation of the Federal. The biggest students borrowing source in America is federal guarantee program which was formed back in 1965. These loans account for nearly a half of the American student population loans which is about 100billion dollars annually. However, based on the 2007/08 statistics of the academic year, the present financial calamity have also affected learning institutions. The volume of the student’s loan increased by at least 10 percent between the 2006/07 and the 2007/08 academic years whereas the private loan stagnated. This is an indicator that the borrowing increased at a time when the crises were looming. In the following years, students borrowing have greatly been affected due to a drop on the financial availability. In spite of the changed in higher learning institutions, learners have other ways of continuing with their educational pursuit. Some institutes doing away with unnecessary costs so as to compensate for the expected increase in students in pursuit of financial aid. For example, Boston College is reviewing its budget to strengthen its reserves for financial aid while Princeton and Tufts are proposing of spending millions of money on student assistance the following next year, according Boston Globe reports (Office, 2008).
The changes may require students thinking of attending colleges which are close home to think about moving away so as to gain from these concessions. The present economic catastrophe has affected all the population areas, including higher education institutions. As universities forfeit student funds, many of the students have to leave their comfort zones so as to get a college degree at an affordable price and on time. This will require researching many institutes to find those that suit their needs and finance. The discussion up to this point shows that there are certain elements that exacerbate a child’s education and others that make educational outcomes better during a crisis. The overall effect of an economic crisis on a student or a child is therefore indefinite. Also, the overall effect of an economic crisis on all the children in the country is also theoretically not clear.