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Private Loans for College Dry Up, Just as Students Most Need the Money

by Robin Chen Delos , October 31, 2008

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Wu, a junior at the southeast Virginia-based public college, says her family will have to be more conscientious about spending. As an international student, Wu’s family pays $19,000 a year for her to attend William & Mary.

“There are lots of little sacrifices that we’ll probably have to make,” Wu says. “I’m probably not going to be able to go back home [to Taiwan]. We’re going to have to be more frugal.”

William & Mary was hit with a 7 percent reduction in state funding, which translates to $3.4 million. As a result, the college is cutting costs in maintenance and operations and implementing a college-wide hiring freeze, says Brian Whitson, the school’s director of news services.

Officials there haven’t cut programs yet, Whitson says, but they haven’t ruled out that possibility for the upcoming academic year.

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