Is Your Student Loan Safe?
Students Scramble to Secure New Loans as Dozens of Lenders Drop Out
Texas A&M University financial aid director Delisa Falks said that in the last few days, the university has heard from seven different lenders saying they could no longer provide federally guaranteed loans.The economy has not been good lately. We have been in the middle of a mortgage (house payments) and bank crisis. So that has an impact on student loans.
It's a problem that has been ongoing nationwide for months, leaving many students with fewer options for financing their college educations.
Student loan companies traditionally raise capital by selling bonds, but as a fallout from the subprime housing meltdown continues to shake the country's financial sector, investors have become wary about putting their money into student loans.I don't even understand all the fancy economic lingo, but what matters to you is that at this time there is less money available for students. Hopefully the economy will get better in the next year and prospects will improve.