As financial aid officials, students, families and lenders continue to experience the peak period for higher education enrollment, the combined efforts of policymakers, schools, and lenders appear to have averted what could have become a devastating college access crisis for California students.
During the past year, over 100 lenders exited the Federal Family Education Loan (FFEL) program, and many others restricted lending to students at certain schools. These developments, resulting from credit market turmoil and $40 billion in cuts to the FFEL by Congress, led to widespread concern that students would have limited ability to finance their educations this fall.
ALL Student Loan, California’s largest nonprofit lender, recently interviewed financial aid officers at 76 California colleges to assess efforts to limit the credit crisis’ impact on student borrowing. The results reveal that some students have had more difficulty in finding a lender, but widespread damage to college access has been prevented this year. However, schools are already voicing their concern for next year. Read full Story.