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Pocono News Section
School Loan Crisis
School Loan Crisis - Friday, May 2, 2008 at 5:21PM EST
Friday, May 2, 2008 @ 05:21pm EST
Lending companies say money for school loans is running out.
It comes at a time when students need more help than ever to pay for college.
The federal credit crunch is hurting the student loan process, from top to bottom.
It's making it tough for the presidents of big loaning companies all the way down to a college freshman.
Friday morning at Kings College , a congressman and president of a lending company talked it out with students.
Caitlin Rowe is a freshman at Luzerne County Community College and she feels the crunch.
"I try not to think about it. It's something that I just try to push back into my mind. You know, I know it's there, I know it's looming," says Rowe.
What's looming is tens of thousands of dollars in college costs.
Rowe, like many co-eds, depend on student loans to afford college.
But these days, companies known for bucking up money for student loan lenders are backing out.
Sallie Mae president C. E Andrews say that's causing big problems.
His company is the largest student lender in America .
"The crisis is now. It's not September 1st when school starts, it's now. When students and the schools are lining up their financial aid packages this fall," says Andrews.
To help, congress is stepping in.
Legislation passed is giving companies like Sallie Mae an emergency green light to dip in federal funds.
It's all to make sure students like Stephen Kopko can make the grade.
"It gives me the opportunity to actually go to an institution like kings or continue my education in graduate school. So if I wasn't provided with those loans I might not have had that opportunity to be here right now," says Kopko.
Lauren Piccolo is a sophomore, but is already looking forward to med school.
She hopes the student loan crisis levels out soon.
Piccolo says, "I'm not particularly frightened. I know that they're handling it very well. So even if a lot of people are worried, and the crisis continues I think that they're going to have a good solution for it."
School leaders, congressman, and student loan companies hope so too. | | |
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