Total Bankruptcy

Amidst concerns about student loan availability and affordability during the credit crunch, the House of Representatives has approved a measure that would allow the Department of Education to purchase federally guaranteed loans that lenders cannot sell to private lenders and also increase the amount of money that students can borrow.

Just yesterday, Bank of America was the latest in a long line of lenders who said that they will no longer make private student loans available as a result of the credit crunch and a lack of financial backing in such asset-based securities from investors.

According to estimates from the Education Department, nearly 7 million borrowers will require more than $68 billion in federal loans this academic year.

Is increasing the amount students can borrow for education really the answer? There's nothing like working hard toward an educational goal, only to realize you're over your head in debt.