03-31-2008, 03:25 PM
|
|
Elite Member
|
|
Join Date: Jun 2003
Posts: 2,726
|
|
|
Student Loans harder to get??
US credit crunch hits education as banks abandon student loans - Times Online
Quote:
One of America’s leading banking associations has given warning that the United States faces a growing educational apartheid as some lenders withdraw from student loans amid new evidence that the credit crisis has spread across all types of borrowing.
In the past fortnight, some banks, including HSBC, have pulled out of the $85 billion (£42 billion) a year US student loans market, fuelling anxiety that the turmoil that hit debt markets on Wall Street last summer is spilling over into the wider economy and making credit more difficult to secure for ordinary American households.
In the US, many undergraduates take out a federal guaranteed loan and top up their financial needs with a private loan from lenders such as Bank of America, JPMorgan Chase and Citi-group. In the academic year 2005-06, $17 billion in private student loans was used to finance higher education.
Banks have become reluctant to offer private student loans because worsening credit conditions have meant that they cannot package up the loans and sell them on.
|
|