Big Student Lender Suspends Business

[Craftsman]

One of the U.S.'s largest student-loan companies is suspending the remaining part of its student-lending business.

In a letter addressed to college financial-aid officers, College Loan Corp. Chief Executive Cary Katz says the company will "cease all private loan disbursements, effective immediately," because it lost its funding.

"Regrettably, our financing from a large New York bank was abruptly canceled yesterday," reads the Sept. 4 letter.

Brian Jones, a CLC spokesman, identified the bank as Citigroup Inc.

While CLC knew its line of credit was up for renewal this year, Mr. Jones said the cancellation was "unexpected" at the start of a school year, when it had around 9,000 applications from students pending. Those applications, Mr. Jones says, have been canceled, and students are being notified.

http://online.wsj.com/article/SB122058856520403149.html?mod=hpp_us_whats_news

[Justice]

1. there are tens of thousands of students affected across the country

by these shutdowns - many organizations. I only hope the affected students appreciate how this occurred.