The national credit crisis has caused confusion and some last-minute scrambling for college students and their parents, but most of them have been able to borrow the money they need to pay for school. Students, schools and analysts who monitor lending said it’s good, if surprising, news, given the financial turmoil in the credit markets.
"We haven’t had a single student turned down for a loan," said Melissa Gregory, college director of financial aid at Montgomery College. She was surprised, especially because earlier this year some banks announced that they would no longer lend to students at community colleges.
More than 130 lenders have pulled out of the student loan market, according to Mark Kantrowitz, publisher of finaid.org. That included some dramatic departures late in the summer, just when tuition bills were going out.
"What’s especially challenging this year," said James Boyle, president of College Parents of America, "is that the [college] financial aid offices are themselves sort of reeling from various lenders dropping out . . . it’s difficult for the financial aid offices to keep pace, let alone for parents to understand it." Read full story. (Washington Post)