Student loan crunch & Irvine impact?

NEW -> Contingent Buyer Assistance Program
A

Anonymous_IHB

New member
<p>As Irvine is a university town - do you think the student loan problems will have an impact? If so, how?</p>

<p><strong>Impact of the Subprime Mortgage Credit Crisis on Student Loan Cost and Availability</strong></p>

<p>http://www.finaid.org/loans/creditcrisis.phtml</p>
 
I could see that happening, but considering how many students don't get in every year or are waitlisted (very high demand), I would suspect that there could be enough financially able ones waiting in the wings to take the place of students who might be affected to the point of not being able to continue.





Then again, I could be wrong.
 
I'd be more concerned about upcomming tution hikes made necessary by the $16 billion state budget defecit.
 
<p>Federal govt lender of last resort for student loans? Gotta imagine, if credit is harder to get/more expensive, then even the kids that can afford UCI are going to be living on an even tighter budget... </p>



<p>Colleges Turn Away From Private Lenders </p>

<p>Cuts in Subsidies to Banks Eat Into Benefits for Students, Schools Start to Migrate to Federal Direct Loan Program< </p>

<p><a href="http://online.wsj.com/article/SB120639948652760737.html?mod=hps_us_whats_news">http://online.wsj.com/article/SB120639948652760737.html?mod=hps_us_whats_news</a> </p>

<p> </p>
 
Irvine may be a university town, but UC Irvine is also a public institution, which means that it costs less for students to attend. So in general, Irvine would be less impacted by this than a college town build around a more expensive private institution. Moreover, most colleges (UCI included) have enough qualified students to choose from to fill their incoming classes 10 times over, so I don't see this directly impacting enrollments at UCI in any significant manner. Finally, more students would tend to go to college and grad school during times of recession (more difficult to get a job, so increase your appeal by getting an education).
 
Yup. I totally see more people going back to school during a recession. Irvine is not a college town. But UCI is georgeous. After attending Cal States and Community Colleges, I now realize how amazing UCI was. I just can't believe in has been in non-stop construction for the past 11 years!!
 
^^^ My feeling is that these bozos should all be fired. They knew that alot of these loans were toxic but still took on LARGE amounts of them. PRUDENT business practices would be to have a little high risk and then hedge ....



Oh well...



(Funny Note: One of my credit cards raised my interest rate to 28%. When I called to get it lowered back down they told me that the best they could do was 24%. When I asked to close the account, he of course tried to change my mind. One of his reasons was that they are suffering because they took all these toxic loans. I almost laughed myself silly. When I recovered, I told him, he should then tell his company that they should be smarter and take a more prudent outlook on there business practices and fire whomever caused this issue. - He was quite silent then.)



Anyways



-bix
 
Well at least they just did the old fashioned guarantee. Can you imagine what a supersized student SIV would have looked like? Although I guess if they did the loans by marks (ie. the highest grade students will land the jobs & pay us back assumption), I guess the A rated tranche, B rated tranche, etc. might actually be just that ...





U.S. House Backs Bill to Avert Student Loan Crunch (Update2)

http://www.bloomberg.com/apps/news?pid=20601087&sid=ayXixvjmdNic&refer=home
 
[quote author="Anonymous" date=1203966699]<p>As Irvine is a university town - do you think the student loan problems will have an impact? If so, how?</p>

<p><strong>Impact of the Subprime Mortgage Credit Crisis on Student Loan Cost and Availability</strong></p>

<p>http://www.finaid.org/loans/creditcrisis.phtml</p></blockquote>


Anon, I must respectfully disagree, Irvine is definitely NOT a university town. If you want to check out a university town, go to a place like Davis.



Also, UCI has the highest percentage of students who have some sort of financial aid from various institutions, out of the entire UC system. (At least as of 2004) So, take what you will from that info....



BTW, aren't there stats talking about how enrollment at universities increase during a time of recession? Could have sworn that I've read that somewhere...
 
[quote author="k.o." date=1208497111][quote author="Anonymous" date=1203966699]<p>As Irvine is a university town - do you think the student loan problems will have an impact? If so, how?</p>

<p><strong>Impact of the Subprime Mortgage Credit Crisis on Student Loan Cost and Availability</strong></p>

<p>http://www.finaid.org/loans/creditcrisis.phtml</p></blockquote>


Anon, I must respectfully disagree, Irvine is definitely NOT a university town. If you want to check out a university town, go to a place like Davis.



Also, UCI has the highest percentage of students who have some sort of financial aid from various institutions, out of the entire UC system. (At least as of 2004) So, take what you will from that info....



BTW, aren't there stats talking about how enrollment at universities increase during a time of recession? Could have sworn that I've read that somewhere...</blockquote>


I respectfully disagree that Irvine is definitely not a university town, this town was planned around a university. That it doesn't fit the movie stereotype of a university town with student riots and bonfires and a frat row does not change that UCI is by far the city's largest employer and responsible for national and global (to some degree) marketing of the name Irvine.



The only major soft spot i see in the student loans may be the professional grad students who have very high education costs and are old enough to be on their own financially. Not sure how large a percentage this market is, but it has to be a small fraction of undergrad. Admittedly, subprimes were a fraction of all loans and look where we are now.
 
Has anything changed since I left UCI? The only places to eat after 10:30pm were Del Taco next to Albertsons, Denny's that opened up after Hamlet closed down, and In-N-Out in town center. No place to go drink or catch a good movie either, unless you drive yourself out to Spectrum or Metropointe. The school does employ a great deal of people and provide education for a lot of students, but it is not a college town that most high school kids imagine it to be. Walk through Berkeley or Westwood. Drink a glass of beer in Harvard square. Shop from vendors in Washington Square. Hit the bookstores in Georgetown. They are the college towns that every kid dreams about. Irvine isn't one of them.



With that said, I enjoyed UCI for what it was. A quiet controlled campus that forced me to study all the time since I had nothing else to do with my off hours.
 
You must log in or register to reply here.
Back
Top