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VOLUME 103 ISSUE 56
T H E V O I C E
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Ser ving the students of the University of Hawai‘i at Mānoa since 1922
Got friends? Antarctic-what? Economic Grinch
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H:77° L:69° Commentary | Page 4 Mixed Plate | Page 6 Cartoons | Page 9 DEC. 11–14, 2008

Demand for student loans reaches all-time high

By Taylor Hall
Ka Leo Editor-in-Chief
2008 will be remembered as
a recessive year, with declining
job opportunities and necessary
changes to the nation’s spending
habits. It was also the year that
student loans became a necessity.
There have been a record
number of student-loan requests
this semester, according to
Ku‘ulei Feliciano, interim assis-
tant director of the University of
Hawai‘i Financial Aid Services
office. The office has given out
6,000 loans this year, nearly dou-
ble that of 2007.
“More students have had to
apply for financial aid,” Feliciano
said. “The downside is that there is
less money to give out.”
According to Feliciano the
large number of requests are fil-
tered through a small pool of
Steps to getting a student loan
1. Fill out the FAFSA online at fafsa.
ed.gov
2. Be sure to include your school’s code
in the designated section, so UH can
receive your award information (UH
code: 00161000).
4. UH sends your award information to
your MyUHPortal account (myuhportal.
hawaii.edu).
5. View your award offers and accept
or decline each.
6. Sallie Mae sends the school your
loan; you receive a letter in the mail
with information about your new loan.
7. UH disburses any funds above the
cost of tuition to you in the second
week of school.
companies still offering student
loans. The loans offered through
UH Mānoa’s financial aid office
are financed through Sallie
Mae. Outside of the UH system,
American Savings Bank is the
only FDIC bank that offers stu-
dent loans in Hawai‘i.
“If the bank makes 3 percent
off each loan, that means they’ll
make an average of a few hun-
dred off of you. If you
don’t pay (it) back,
Students must
navigate the pitfalls
of financial aid, espe-
cially during tough
economic times.
MCT CAMPUS
then they’re out of that amount,”
Feliciano said.
Sallie Mae reported $6.8 bil-
lion in earnings in the third quar-
ter, up 17 percent from last year;
however, it still had a loss of $159
million. Without federal funding,
Sallie Mae wouldn’t exist.
The avail-
ability of
student loans follows the hous-
ing market, said Feliciano. And
with the housing market in such
decline, students have every rea-
son to be worried.
“More FAFSAs have come in
than ever,” Feliciano said. “Nearly
every student at UH Mānoa is using
at least one form of financial aid.”
With increased competi-
tion for
financial
aid,
students should begin the applica-
tion process early. The deadline for
FAFSA first priority for the 2009-
2010 school year is March 1.
Why does the FAFSA process take
so long?
The FAFSA form is available starting
Jan. 1, but the process can extend into
early summer. “The time frame is total-
ly dependent on the student,” Feliciano
said. While students can begin working
on the application in January, it cannot
be finished until the previous year’s tax
information is received. “Simply apply-
ing is great, but you have to finish,”
Feliciano said.
Bank or Credit Union?
Banks have the downside of high
interest rates, although they have
the ability to lend larger amounts.
Credit unions offer lower interest rates
because each customer owns a part of
the company, so the credit union can
lend as much money as the custom-
ers provide.
Need credit?
The University of Hawai‘i
Federal Credit Union offers
a start-up plan for students
with low cash flow who want
to build their credit. The “Student
Savings Plan” has a start-up cost of
$5 and comes with a debit card and a
credit card with a credit limit of $300
that can be increased. The plan was
introduced this semester and has a
low minimum, which is usually around
$300 at banks. For more information,
visit uhfcu.com

News 2 T H U R S D A Y S U R F O U T L O O K Special Advance Screening

INSIDE TODAY

Mixed Plate 3
6 HONOLULU TIDES NORTH 3–5+ Wave heights
Another northwest swell will see page 11
Commentary 4 HI 3:11 a.m. | 2:39 p.m. SOUTH 1–3 reported
build rapidly tonight, peak
PLEASE LO 10:32 a.m. | 8:16 p.m. tomorrow, then gradually
Cartoons 9
WEST 2–4 Hawaiian style,
RECYCLE 6 HALEʻIWA TIDES about half face
subside through the begin-
Puzzles & Classifieds 10
HI 2:09 a.m. | 1:37 p.m. EAST 1–2 heights.
ning of next week.
MAHALO Sports 11 LO 8:27 a.m. | 6:11 p.m. WINDS 15–25+ mph, S-SW SOURCE: NATIONAL WEATHER SERVICE