Student Loan Service Suspends New Loans
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Updated: 7:39 PM May 7, 2008
Student Loan Service Suspends New Loans
Dozens of lenders that college students depend on to pay for their tuition have pulled out and that's left students and their financial advisors waiting to see what happens next.
Posted: 6:50 PM May 7, 2008
Reporter: Jeff Allen
Email Address: jeff.allen@wymtnews.com
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Dozens of lenders that college students depend on to pay for their tuition have pulled out and that's left students and their financial advisors waiting to see what happens next. We talked with an official at the Southeast Kentucky Community and Technical College and she says she's hopeful students can find the money they need but thanks to the nationwide mortgage crisis, it's going to be a lot tougher for students.

Brent Johnson says he beat an addiction to drugs, graduated from drug court, and is now making straight A's in business school but he fears he might not be able to continue paying for business school.

"With fuel prices going up, it's really a struggle trying to stay in school, afford bills, then books, summer school," Johnson said.

More than 90 percent of Southeast Kentucky Community and Technical College students get by with the help of students loans, but the largest lender, the Student Loan People, has stopped loans.

"They made it easy for students in Kentucky, such a service to them, so we'll have to go outside of that now," said Rebecca Parrott-Robbins with Southeast Kentucky Community and Technical College Student Affairs.

"It's a huge concern for me because I'd love to finish my education," Johnson said.

Financial advisors say the best thing students can do right now is keep in close contact with their school's financial advisors which should help them find loans through other lenders but they say it could still cost them in the long run.

"You have over 60 that's opted out and that scares other lenders, that increases interest rates, fees, and of course is a higher payback for the students," Parrott-Robbins said.

And that's leaving students like Brent Johnson concerned.

"And even if I go into a four year school from here, where can I go? Can I get the money to go? Will I be able to go," he asked.


Latest Comments

Posted by: Jeannie on May 8, 2008 at 08:55 AM

The US government spends far more of our tax dollars giving corporations tax breaks and handing out subsidies to pseudo-farms like ADM. Big oil alone gets $21 billion/year. I say put an end to corporate welfare and give it back to the people. All welfare benefits combined given to illegal aliens comes nowhere near what was recently doled out to the Bear Sterns investment firm. No reporting on this stuff because it affects people who already have money. Government would rather us be mad at our neighbor than upset with the true welfare recipients - the rich.
[ Report Abuse ]
Posted by: lea Location: annville on May 7, 2008 at 07:13 PM

What I want to know is, if the goverment has the money to keep up all of the Mexicans thats over here illegal giving them a medical card, food stamps, paying utilies and so forth, then they can afford to pay for the students here wanting to make something out of theirselfs. Its ashame when the american people are put on the back burner and the immigrants have top priorty. Not to mention how the goverment has let the gas prices get out of controll like they have. What are the sick, and elderly people needing to go to the doctors and getting their medicene. I beleive that they just want the people to give up all hope and just take what ever they dish out. Can you imagen what the little children will do without enough food and health issues? People lets get real the government has taken over and time is getting short for the world to stand.
[ Report Abuse ]
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