Although it’s expected that everyone is going to be affected by the economic crisis, many wouldn’t have thought about how it would affect college aid for students. Many colleges and universities depend on endowments and investments in the market. Universities like Harvard invest big time in the market; they also invest in hedge funds and venture capital funds. When the market goes south, all the universities that made big bets in the market suffer. Ultimately, they can’t give the financial aid for the students that really need it.

There is no sign of end to the current crisis. Clouds may clear for the students in 2010. Just a hope…

Related Link: Colleges Struggle to Preserve Financial Aid