In The Know

• Apr 18, 2008 8:52 am US/Central
• Digg | Facebook | E-mail

  Close WindowE-mail This Page

  In The Know: Recession Might Mean No College

  Required fields are marked with an asterisk(*)

  ---

  • Recipient E-mail:* 
  • • Your Name:* 
    • Your E-mail:* 
  • Add a Message:
  •   Send me a copy of this e-mail.

  • Type the characters in this picture:* Click here to refresh with new letters

  ---

  The information you provide will be used only to send the requested e-mail and will not be used to send any other e-mail communications. Read more in our Privacy Policy

  Send E-mail

  | Print

In The Know: Recession Might Mean No College

Reporting
Don Shelby

The economy teeters on the brink of recession, housing values are falling and unemployment is up around the country. Don Shelby said the next victims may still be in high school.

Hundreds of thousands of kids will head off to college in the next few years …or not. (Thursday) the largest U.S. student loan company, Sallie Mae, said it is facing a train wreck.  It used that term.

Sallie Mae's already lost $104 million in the first quarter of this year, and said it won't have the money to provide loans for prospective college kids without government intervention.

There are a lot of Americans who rely entirely on these loan programs, and there is great fear in the student loan business that government help won't come soon enough.  Not soon enough to save the companies, not soon enough to help a kid pay for a college education, not soon enough for parents who may have to take a second mortgage on their undervalued homes if they want the kid to get a college education. 

A few election cycles ago, there was a slogan, "It's the economy, stupid." 

This time around, mom and dad may have to say, "I'm sorry, but it's the economy, honey."

(© MMVIII, CBS Broadcasting Inc. All Rights Reserved.)