College Loan Crunch targets Community College Students
June 9, 2008 – 2:02 am by Nick
The credit crunch, deeply rooted in the mortgage crisis, has led banks to decrease college loans substantially to students at small four-year colleges and community colleges.
Even though all loans are co-signed by the federal government, banks have deemed students attending these “less competitive” institutions as high risk of not completing their studies.
The reduced amount of funds has led banks to prefer big loans to students attending private four-year college or public four-year college then smaller, “riskier” loans to community college students.
6.2 million students attend community colleges. These decision affect more than 40 percent of all college student sin the USA. Hopefully, schools can shift quickly to federal lending programs, which have been expanded by a recent congressional bill.
