Business Week Magazine reports that students at private colleges are having trouble getting private loans to finance the rest of their education. A survey released by the National Association of Independent Colleges and Universities shows that although students are struggling with loans, college financial aid offices are still able to cover their share. Yet, there is a more disturbing trend:

"Three-quarters of the 504 schools surveyed reported more requests for institutional aid this year, and despite the largest cohort of 18-year-olds since the Baby Boom, one in five colleges reported a smaller incoming class than expected."

College enrollment is decreasing due to increased costs and lack of loans and aid. If something is not done to curb tuition rates and the credit crisis, this trend will continue for years and significantly curb America's competitve edge in the workplace.

A report by a career networking firm shows that 50 percent of college students say they would be more likely to accept a job that offers higher pay but less career satisfaction in order to pay off their student loans. Also, 47 percent of recent grads say their career pursuits are influenced by loan payments. With big payments ahead, students have to forget their dream jobs in order to pay. I guess we now have to say that kids can be anything they want...if they have the cash.

The US House voted yesterday to extend their protection of student loans granted by lenders who cannot finance them. Under the plan, the government would ensure all federal loans, like Stafford Loans, will be paid out to students. This policy has been in effect since last May and is being extended due to the loan crisis and broader problems in the economy. The bill now goes to the Senate for approval. Hopefully it will be passed and give relief to students frantically trying to secure loans for school.