More banks backing out of loans for community college students

Citing uncertain financial times, an increasing number of national banks are curtailing their lending relationships with community colleges, all the while continuing to loan to students at more lucrative institutions.

Several local schools – including Harper College, McHenry County College and Waubonsee Community College – are feeling the pinch.

JP Morgan Chase spokesman Tom Kelly said the financial giant in May suspended lending to Illinois schools that provided the least amount of business.

"Given what the interest rate is, and what the subsidy of the loan is, some schools are just not profitable enough to take the risk of making those loans anymore," Kelly said. Read full story. (Daily Herald)

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