Credit Market Situation Makes It Difficult to Obtain Student Loans

According to CNNMoney.com, “Investors spooked by the current unrest in credit markets are shying away from student loans . . . tepid demand for these seemingly safe investments is not only driving up the cost of borrowing for students, but it is also threatening to limit the amount of loans available.”

This is bad news for future borrowers of both private and federal student loans. Because of the poor demand of the securities, loan issuance could go down by next month. Even students with good credit could have trouble getting funds. Read the rest of the article here.

Source: CNNMoney.com