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New reports show that students are relying on federal student loans to finance their college tuition as private student loans become more difficult to obtain. The reports, issued by the College Board, show that private loans fell a whopping 52 percent in the 2008-2009 school year as a result of the financial crisis along with tightened credit standards.

Private student loans are traditionally more difficult to obtain than federal loans because of their higher interest rates and stricter guidelines for approval. It is for this reason that they are typically a last resort for students who don't qualify for the financial-need driven federal loans. With that being said, students still took out an estimated $22.8 billion private loans in the 2007-2008 school year; however, by the next school year, that number dropped to $11 billion.

To offset the drop in private student loan availability, the federal government attempted to boost student lending in government programs. As a result, federal loans jumped 15 percent in volume, making the total number of federal student loans in the 2008-2009 school year $84 billion. It also helped that as parents lost their jobs, they were able to qualify for a broader spectrum of student loan options for their children.

But even with President Obama pumping funds into non-repayable federal financial aid like the Pell Grant, it seems students still don't have enough to work with due to tuition increases. According to the College Board reports, the average tuition at four-year public colleges and universities in the United States rose 6.5 percent in the 2009-2010 school year to $7,020, while tuition for private institutions rose 4.4 percent to $26,273.

So now students, just like unemployed workers, are left scratching their heads as they try to work their way through a system that, while deemed a necessity, seems to lack the resources necessary to successfully participate.

Have you or your child had difficulties obtaining private student loans this school year?

The delinquency rates dropped on auto loans made indirectly through dealers and directly to consumers in the second quarter. The numbers are provided by a report from the American Bankers Association (ABA) and may be an indicator that predictions made by economists that the economy has already hit rock bottom and is slowly-but-surely recovering and on target.

But then again, maybe not. While the report showed promising numbers in the auto loan realm, including a drop in dealer-arranged auto loans 30 days past due from 3.42 to 3.26 percent, and also a drop from 3.01 to 2.46 percent on auto loans made directly to consumers by banks, some other numbers in the report did not show proof of a recovering economy. For instance, home equity loan delinquencies rose from 3.52 to 4.01 percent in the second quarter. Also, personal loan failures rose from 3.47 to 3.90 percent.

ABA's chief economist, James Chessen, notes that the reason auto loan delinquencies have dropped while other numbers are on the rise is because auto loans are so easily cleaned up. A one- or two-month delinquency can result in a quick car repossession and bank charge off, while mortgage loans may spend numerous months delinquent before any action is taken.

Of course, you don't want to be in a position where your delinquency could turn into a repossession. So if you're in danger of this occurring, consider:

• Contacting your lender to see if you can make some type of payment arrangement until you are financially on track.
• Cutting costs like cable TV, eating out, and magazine subscriptions to help fund your car payments.
• Downsizing your vehicle to one that requires a less expensive monthly note.

While economic times are tougher than they have been in years, if you act carefully and accordingly, you can help avoid your own auto loan delinquency.

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