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Friday, April 18th, 2008

Student Loan Legislation Passed in the House

Amidst concerns about student loan availability and affordability during the credit crunch, the House of Representatives has approved a measure that would allow the Department of Education to purchase federally guaranteed loans that lenders cannot sell to private lenders and also increase the amount of money that students can borrow.

Just yesterday, Bank of America was the latest in a long line of lenders who said that they will no longer make private student loans available as a result of the credit crunch and a lack of financial backing in such asset-based securities from investors.

According to estimates from the Education Department, nearly 7 million borrowers will require more than $68 billion in federal loans this academic year.

Can't make your bills? Learn about filing bankruptcy.

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Posted in Bankruptcy and the Economy | 1 Comment »

Monday, April 14th, 2008

Credit Crunch Update: Sallie Mae to Charge for Student Loan Applications

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

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Posted in Bankruptcy News and Events | 4 Comments »