When the Aid Checks Stop

Now the Bush’s ish has affected the big lenders with student loans:

Dozens of the country’s biggest lenders have stopped doling out student loans to struggling college kids because of the economic upheaval - leaving scores of would-be scholars combing the want ads this fall instead of hitting the books. Many lending experts say panicked banks are still reeling from mortgage meltdowns and are leery about taking a chance with their dwindling liquidity. More than 33 banks and lenders have completely shuttered or suspended their private loan programs in the past year, and more than 100 have stopped participating in all or parts of the federally guaranteed student-loan program, according to FinAid.org, a Web site that keeps track of the student-loan industry.
The scurrying ranks include former lending powerhouses such as MyRichUncle.com, Bank of America and Campus Door, which was backed by Lehman Brothers. “The credit crisis has had a tremendous impact on student loans,” said Keith Alliotts, of TuitionBids.com, a website that helps students find the best prices on loans for college. “It’s hard to find anyone doing student loans because so many have left the space.” He said his office is inundated with calls from frantic students and their parents, scrambling to come up with the cash for college. “It’s a sad state of affairs,” he said. Kristina Fernandes, 20, was so desperate that she borrowed $8,000 at 18 percent interest rate to cover her expenses at NYU this semester. “It sucks,” she said. Her federal student-aid package gives her $15,000 a year for school, but she reckons that her tuition, room and board will reach $40,000 for the year. Fernandes, an economics student, took out the loan and works two jobs to swing it. “I’m having a hard time with the whole time-management thing because I spend so much time working instead of studying,” she said.

Kids better start working at Mickey D’s early or they will just be assed out. As if saving up for college was not hard enough, now your loans are up for grabs.

Source