Trouble getting money for college? Ready to apply online for student loans again? TALF is here, and it should help. The Term Asset-Backed Securities Loan Facility, a new program from the Federal Reserve, provides a sizable chunk of money for new loans. What kind of loans? See below.

Tight Money
The economic crunch has tightened money and lending all over the place. The trouble banks have had with their assets has left everyone wondering if the banks could still lend money.

The Federal Reserve stepped in and created the TALF, a fund of $200 billion to use for new consumer loans. This can be expanded to $1 trillion, by the way.

The idea here is to loosen up the lending and get people spending again, like on college tuition.

What Loans Qualify
I read the TALF FAQ at federalreserve.gov, and frankly, it's boring. The point is that the Fed will provide banks and other lending institution with cash to lend. The have rules, of course, and one rule is that the money has to go to consumer spending types of loans.

These include cars, credit cards, student loans, SBA loans for small businesses, and more. This will provide more money for student loans.

The point: if you need a loan for this fall, you should apply online for student loans soon. Hopefully, this new allocation of money by the reserve bank will loosen up funding for the rest of the year or even beyond for students.

Why TALF?
The Federal Reserve can see that lending has decreased, and so has other things. Fewer people buy tickets to concerts. Not as many people can go to Starbucks or Caribou. A lot of people have lost their jobs. Fewer people lease or buy cars, trucks and SUV's. What fun is that?

To help people spend more, and help business keep us all working and productive, TALF will make lending easier for the country's banks. If they have real assets, like loans made last year to students or car owners, the bank can then apply to TALF for more money. Then, the bank can lend that as well. Lots of loans, I know. Debt has serious drawbacks, so if you don't need it, stick with cash.

On the other hand, if you run a business that thrives during spring or summer time at the beach, and you just need a little to carry you over until busy season hits, this might be just the ticket. Likewise, if you want a college degree and don't have a job to pay for tuition, a small student loan may help you finish up.

What About Obama Increasing Pell Grants?
Yes, Obama and even Bush increased the Pell grant allocation. That will also help. If you qualify for a Pell, make sure you apply. By the way, your student aid report at the FAFSA site will tell you what you can expect from a Pell grant, and what you can borrow in student loans.

Private Student Loans Included
What if you don't qualify for the Stafford, Perkins, or Grad/PLUS loans, or any others through your state? TALF funds can also be used for private student loans. Use these sparingly as the interest rate is higher and you may not have as many options for deferment or consolidating your student loans later.

Tell a Friend
Now that you know this money will be available soon, tell a friend about it so you can both get your tuition paid. Those bills come sooner than later, right?

Remember, if you have to get a student loan, only get what you need. Someday you'll have to repay it. Hope your school year goes well, and you get the financial aid you need to finish.