Monday, August 25, 2008

Bank pullout in student loan market no reason to panic, financial aid administrators say

Banks across the country are pulling out of the student loan market, but financial aid officials in West Virginia say there is no reason to panic.

About 100 banks and other lenders have stopped participating in the Federal Family Education Loan Program (FFELP), according to the National Association of Student Financial Aid Administrators. Thirty lenders have stopped offering private student loans.

Some West Virginia students have had to switch lenders, but several financial aid officials say they haven't heard of students being denied loans altogether. Still, they're monitoring the situation.

For more on this story, go to The Chareleston Gazette

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