As the economy shrinks, joblessness expands and small-business owners lose income, many college students and their parents are struggling to make payments for the second half of the academic year, which are typically due this month or in January.
Midyear applications for financial aid, typically rare, are up at many colleges, as families that thought they wouldn’t need help earlier in the year are now feeling squeezed.
Michigan State University, where students have been hit hard by the woes of the auto industry, last month set up a $500,000 fund for families hurt by the economy’s slide.
Experts say it is too early to tell what effect the recession might have on overall college enrollment, which typically rises in downturns as the unemployed who can afford it flock to schools for retraining.
Yet next fall is shaping up to be a nerve-racking time for many colleges, which also are coping with shrinking state subsidies and endowments.
