In the last week or so, we've been talking a lot about how the U.S. credit crunch has sparked fears about student loan availability.
With this in mind, the country's largest student loan lender -- Sallie Mae -- announced late last week that it will be cutting certain types of student loans and charging loan application fees ranging from $35 for freshman students to a couple hundred dollars for graduate students.
Noting that one-third of the top 100 student loan lenders have left the business as a result of current credit difficulties, a high-ranking Sallie Mae official provided some more reasoning behind this decision:
• Sallie Mae to Charge for Loans to Students
Tags: credit crunch, Sallie Mae, student loans
This entry was posted on Monday, April 14th, 2008 at 4:46 pm and is filed under Bankruptcy News and Events. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.
Loan application fees? This is ridiculous. This is also the reason our country is lagging behind better educational systems. Instead of focusing on school, many students now have to worry about how to pay for it in the first place.
The reason it is so expensive in the first place is the easy money lending that government banks like sallie mae provide. When they finally go bankrupt, the price schools can charge will go back down. It is fanny mae freddy mac all over agin.
If i am enrolled in school and have a sallie mae loan, will they call my loan now if I file bankruptcy? Plus I will need more to finish school. How does bankuptcy affect it.
Don’t worry Patricia Jones - bankruptcy will not affect your Sallie Mae loan. In fact, your loan with Sallie Mae (which you will never afford to pay back) cannot be dischargeable in bankrupcty. For this reason, they will give you all the money you want (even if you don’t need it). Welcome to student loan he!!