On Nov. 4, 2008, Barack Obama was elected as the 44th President of the United States, making a huge mark in history. He will now take on one of the most difficult responsibilities in the history of our country since the Great Depression.

It is no secret that our country is going through a time of economic crisis, and each day, new reports are published that describe the faltering United States economy. Each day, the stock market seems to be going up and down, gas prices continue to rise and fall, and lending companies become more and more reluctant to give out loans in fear of a recession.
The economic crisis began when lending companies found themselves unable to remain in business due to over-lending to unreliable borrowers. Wall Street has become incredibly volatile, and the housing market has slowed to its slowest pace since Jan. 1991.

The price of oil plunged after a summer plagued with high gas prices, and now consumers are enjoying relief at the pump. Oil, which has settled at a price around $72 a barrel, has become markedly less expensive than in July, when the price per barrel peaked at $147. President Bush assured Americans that extreme government interventions will rescue the financial system and stabilize the economy, and already our country is being forced to rush through a $700 billion “bailout plan” that will rescue banks that are experiencing catastrophic debts.

Some economists say that the same things are happening right now that were happening just before the beginning of the Great Depression, and unless the mess is cleaned up soon, an economic downturn will occur, and a recession is inevitable. College students across the nation are now becoming more and more aware of the economic crisis, and how it will affect them in the near future.

Some students at Northwest already see the economic crisis beginning to affect their lives, but others say they are not concerned with the dwindling economy. Bobby Rowland, a vocal music education major from Olive Branch, says, “It’s messing with how I get paid and how I budget my money for basic needs like gas and clothes.” Lindsey Waller, an art major from Oxford, says, “My wallet empties faster, and I’m basically living off of Ramen Noodles.”

Students who depend on Pell grants or their parents for their financial needs might not feel the pain of recession yet, but the economic crisis in America will eventually affect everyone, and college students will feel the pain soon enough.

Marty Bolen, an economic instructor at Northwest, says that high gas prices and expensive groceries are just the beginning of the effects of the stumbling economy. “When the economy takes a downturn,” Bolen said, “there become fewer employment opportunities for high school graduates. Research consistently shows that when this happens, college enrollment increases, so obtaining a degree could become more competitive in the near future.”

Bolen says that if college enrollment increases, students will find competition in scheduling classes, finding dorm rooms or apartments, and most importantly obtaining scholarship funds.
“As more students enroll in college, there may be more students chasing the limited scholarship funds,” he said. “Scholarships will be more competitive, and there will be more students chasing the scheduled course offerings, so classes are likely to fill up faster.” With banks becoming more cautious with the distribution of loans, competition for financial aid through private banks could increase as well.

Sallie Mae, the nation’s leading provider of student loans reports a loss of $1.6 billion in the last quarter alone. “Campus Door,” another student loan company started by the Lehman Brothers, closed its doors earlier this year.

As credit lines dry up, and lending companies begin to close their doors to borrowers with poor or nonexistent credit histories, some students could be denied loans that help pay for tuition.
For the time being, Congress approved a program that will allow students to rely on loans through the year 2010, regardless of the credit market. This bill authorizes the Secretary of Education to buy loans from lenders when they can’t afford to pay for them.

This program will also increase limits on how much borrowers can receive in federally subsidized student loans, and it will decrease student reliance on more expensive private loans. It will allow parents to defer loan payments until their children leave college.

“Competition for a college degree is going to significantly increase as the economy continues to slip into recession,” Bolen said. “Every student should strongly consider improving their personal portfolio by improving the assets they posses, like GPA, extra-curricular activity participation, and by choosing a college major that offers more employability.”

Zach Friend, a spokesman for Barack Obama, says “Obama will create a new American Opportunity Tax Credit to make the first $4000 of each year free for most students.”
Obama’s American Opportunity Tax Credit will cover two-thirds of the cost of tuition at the average public college or university and make community college tuition completely free for most students. Recipients of the credit will be required to conduct 100 hours of community service.
This tax credit may offer some relief to students like Sam Wilson, a pre-physical therapy major from Horn Lake that says, “The price of tuition is too high. I got all of these scholarships and I still have barely enough money to get by.”

While the economic crisis may not be directly affecting us as college students right now, we will all see the effects take place soon. Job availability will decrease, and competition for better jobs will increase among those who are most qualified.

Those who plan to transfer to major universities will find it harder to be accepted into schools and there will be more competition for scholarships. Also, recent college graduates who plan to buy houses or vehicles will run into trouble with lending companies as loans become less available.

Throughout his campaign, Barack Obama has spoke consistently about “change” in America. Now that he has been elected president, he will be responsible for putting that change into action, and turning our country around.

Over the next 68 days, Obama will begin to make appointments for his cabinet. One of the cabinet positions to fill will be the one for U.S. Treasury Secretary. Whoever is chosen to be the next Treasury Secretaty will inherit one of the hardest jobs in Washington, which is bailing the country out of the current economic problems.

With a new president elect in office, it is my sincere hope that Obama will choose cabinet members who will do the job right. As a college student who is required to pay for my own education, I hope that our new president and government leaders will work together to come up with a plan quickly to save our economy, and get our country back on track to being the great nation it once was.

President George W. Bush and President-elect Barack Obama pause for photographs Monday, Nov. 10, 2008, on the Colonnade as the President welcomed his successor and Mrs. Michelle Obama to the White House. White House photo by Eric Draper.

White House photo by Eric Draper.