Archive for the ‘College Lending’ Category »
The CEO of Sallie Mae warned of a “train wreck” coming in the $85 billion education financing market without urgent government intervention according to an article on MSNBC.
Chief Executive Al Lord told investors on a conference call Thursday, that a market hit by a credit crunch and cuts last year in federal subsidies to student lenders is cause for concern. Conveiently, his remarks about the the state of the college loan industry came hours ahead of an expected vote on the floor of the U.S. House of Representatives on a bill which could help bail out the lending institutions.
A statistic to note in the conference call from Mr. Lord:
Demand for student loans at Sallie was running at $3 billion a month, while the company has only been able to access funding of about $1 billion a month.
Source: http://www.msnbc.msn.com/id/24167304/
John McCain’s speech at a campaign stop in Pittsburgh spoke of wanting the federal government to free people from paying gasoline taxes this summer and also reaffirmed that college students should be able to secure loans this fall.
With nearly two dozen lenders having dropped out of the federally backed student loan program, lawmakers and congressional leaders are beginning to examine what kind of effect this may have on students and lending for college education.
Source: http://www2.tbo.com/content/2008/apr/15/mccain-proposes-break-gas-taxes/?news-politics
Fewer Options Open to Pay for College
Student loan companies are in dire times and banks are tightening their lending standards by raising rates on borrowing, according to a story on the New York Times website.
As the economy worsens, the traditional ways in which to finance College will become less accessible. This proves especially difficult for families already who are already extended with debt.
Although the New York Times gives several examples of families hit hard by tightening lending standards in the banking industry, statistcs won’t be available on how bad the actual lending situation is, until mid- to late June or July.
Source: http://www.nytimes.com/2008/04/12/business/12loan.html?_r=1&ref=education&oref=slogin