Last week was a difficult time for Wall Street, as the Dow Jones Industrial Average, a key indicator of economic health, plummeted 18.15 percent for the week, dropping below 8,500 for the first time since 2002.

What does this mean for students? For one, students need to pay attention to how the overall economic situation might affect student loans, which could have a huge impact on some students. But for the most part, the average student needs to keep on looking for ways to spend money wisely and weather the storm.

One of the fundamental problems plaguing the economy right now is a lack of credit — lenders are hesitant to give money to anyone, from banks to individuals. Duncan Holthausen, professor emeritus in economics, said students will likely feel the credit crunch first through student loans.

If banks are afraid that any loan could turn out to be a poor investment, particularly for students who may or may not have the immediate ability to repay, they will not make the loan. Holthausen also said if the economy’s credit markets don’t unfreeze soon, this crisis might also impact credit cards.

The biggest issues, Holthausen said, are whether we will be in a recession, how bad it will be and how long it will last.

What can students do? Not much, Holthausen said. For the most part, students need to keep on doing more of the same — save more, spend less. Learning to balance a budget and cut back spending are important skills for students, and now is the best time to learn. It may be even more important depending on how the job market performs — Holthausen said students will most likely feel the effects of a recession through their parents.

Indirectly, students could see their disposable incomes shrink if the job market continues to decline, but changes in parental income are going to have immediate effects.

This matters. With limited credit and possible losses in parental income, the economy can impact students’ continued presence at the University.

Students could benefit as well, but only if they have money to spend — Holthausen said historically, the best time to buy is always after a major economic decline.

The average student, however, does not have that sort of money.

So until then, keep looking for ways to spend only what you need and take this opportunity to learn how to live debt free. This skill may prove useful in the future, and students might as well learn this lesson the hard way.