WKYT | Lexington, Kentucky | News

Student Loan Agency Not Going To Run Out Of Money

By: Tamara Evans Email
By: Tamara Evans Email

There's no doubt about it. College is expensive.

"And the prices keep going up", said Arielle Crosby, a Kentucky State University sophomore.

With prices going up, it leaves more students turning to loans.

"I have 2 loans right now", Crosby says.

"It's easier to apply for loans to help pay for college", says Nathan Adkins, a Kentucky State University senior.

"Most of them could not finish school if not for the student loan program", says Carmella Conner, the Director of Financial Aid at Kentucky State University.

Kentucky's student loan corporation, known as the Student Loan People, was expected to run out of money today due to the national credit crisis.

The loan program was waiting for new federal funds, and thousands of students were waiting for their loans.

"There would be a tremendous amount not receiving financial help", said Edward Cunningham, the CEO of the Student Loan People.

And, if students weren't able to get their loans....

"We'd have a crisis on our hands", Cunningham says.

"I guess would have to see if I could get scholarships, qualify for grants, or take a semester off to get the money", says Arielle Crosby.

"I don't have any help! Probably have to drop out", says Nathan Adkins.

To help stop this from happening, the state is stepping in.

"State government plans to buy a $50 million dollar bond that will act as a binding loan until federal money arrives", says Governor Steve Beshear.

Meaning, approximately 110,000 students will benefit.

The state also plans on looking into the price students are paying for school.

"Looking at the affordability of college in Kentucky and of making it more affordable to our people", says Governor Beshear.

Two committees will meet in Frankfort next week to approve the purchase of the $50 million dollar bond. If approved, the Student Loan Corporation will have their money by next Thursday at latest.


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