Is Your Student Loan Safe? (Dozens of Lenders Drop Out)

[sabra]

Source: ABC News

Students Scramble to Secure New Loans as Dozens of Lenders Drop Out

Forget back-to-school shopping: With just a few weeks to go before the start of the fall semester, many college students are doing some last-minute student-loan shopping as more and more cash-strapped lenders drop out of the student loan business.

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.

It's a problem that has been ongoing nationwide for months, leaving many students with fewer options for financing their college educations.

Falks said that while there are many other lenders to take the place of the recently discontinued lenders, "it's very disappointing that it's gone this way in the student loan industry."

Read more: http://abcnews.go.com/Business/PersonalFinance/story?id=5475085&page=1

[liberal N proud]

1. We had to find a new lender for our daughter in her Junior year

From scratch apply, and refinance. What a mess.

[comtec]

2. I had to use Sally Mae for my student loan

fucking sharks they are...hard to shed a tear ...
but I do weep over all the kids that are goign to loose out on a real education, especially if they are THIIIIIIS close to finishing.
This, in so many ways is an attack on the poor, and middle classes that are desperately trying to improve their lot in life - a normal human instinct - but being shot down by the assholes who jacked up the cost of education, and created this mess in the first place!!!

I wonder... who is profiting MOST from this disaster. in the end it'll be the mega rich who won't have to worry about being shown up as the empty suits they and their families are because some uppity negro from the slums never got that masters' degree in economics magna cum lade to prove that pissed on.. er .. I mean tinkle down... er ... voodoo economics, er.. reganomics, trickle down (and all we get is a trickle on a good day) economics is utter bulllshit!!!

they just prevented the NEXT Barack Obama from happening, and damn them to the lowest pits of hell for it!

and yes I AM bitter about it!

[flashl]

3. No one highlights Sallie Mae Saga or Scandals over past year, IMHO, its as big as mortgage crisis.

Congress bailout Freddie, Fannie, and banks, but not Sallie Mae.

BofA, Citi Scale Back From Student Loans

04/18/08

Bank of AmericaBAC and CitigroupC this week became the latest lenders to scale back their student loan programs amid rising concerns about defaults.

Bank of America on late Thursday said it would exit the private student loan business, but continue to make loans backed by a federal loan program for students. Citi, meanwhile, said earlier this week that its subsidiary Student Loan Corp.STU would temporarily stop issuing loans at schools where profits aren't as high as they'd like.

The defections come at a time of stress for the student loan market, which has seized as investors' appetite for packaged debt has dried up in the credit crisis. Some 60 companies have exited the student loan market recently putting pressure on the remaining providers. Sallie MaeSLM, the nation's largest student loan lender, warned on Thursday that it will lose money on every federally backed loan it makes. That came a day after Sallie reported a first-quarter loss of $104 million.

[fed_up_mother]

4. Sigh

University has just gotten too darn expensive for most folks.

By the end of the summer, my son will have worked and saved enough money for two years of junior college, and he just graduated from high school this year. He's also going to live at home for the next two years. His debt load will be considerably less once he gets his four-year degree. He had a choice of taking out loans to go to college and live in a dorm or apartment, but he wisely chose not to. I think he's a heck of a lot smarter than a lot of his friends who don't even know what they're going to major in, but can't wait to PARTY.

Considering that most young men and women aren't attending Ivy League schools, or even their state's top-tier school, there's no reason for most kids to get into that kind of debt, imo. Sure, the experience of living away from home is valuable, but considering that the average age of marriage is 28, most will have plenty of time to live on their own before marriage - if they choose to marry.

[lovuian]

5. This why OBama is Awesome

he's going to give students loans this is for education of our children

[KamaAina]

6. Meanwhile, the teevee has wall-to-wall ads for "Astrive" private student loans

at, I would imagine, credit-card-like interest rates.

Coincidence? I think not... :tinfoilhat:

[bperci108]

7. In BushWorld the watchword is: Privatization......

So many citizens to fuck; so little time..... :grr:


OTOH...if this keeps up maybe Joe and Jane 'Murican will figure out the New Deal really wasn't as "bad" as Wingnut HateRadio keep telling them.

That would be the ONLY upside to a McSame win---the inevitable economic conflagration happenes just that much sooner. :shrug:


Before I jinx anything, I'll shut up now.....:spank:

[Canuckistanian]

8. If you were looking for a business loan

There are probably zillions of choices. Not to mention grants, tax breaks, free information and administrative help from the government.

But students are allowed to fail in poverty.

Does education MEAN anything to America any more?

[dysfunctional press]

9. good luck paying those loans back, kids...considering the kinds of jobs that will be available...

or NOT.