More Lenders Back Out of Student Loans
Brazos Higher Education Service Corporation, Inc., the fourth largest holder of guaranteed student loans and the largest nonprofit loan provider, will not be able to issue new student loans to college students this fall. The company had initially announced in March that it would suspend providing Federal Family Education Loan Program (FFELP) student loans, but after emergency legislation passed this summer to help FFELP lenders, it looked like Brazos may be able to stay in the game. However, they recently issued a news release stating they would not be able to provide new loans to students this fall, citing the short amount of time between the passage of the Ensuring Continued Access to Student Loans Act and fall semester loan disbursement dates. "We have simply run out of time to secure financing to disburse loans as soon as they are needed," said Brazos CEO Murray Watson.
In another blow to many families' pocketbooks, the Massachusetts Educational Financing Authority (MEFA), the state's nonprofit student loan agency, also announced that it would be forced to suspend its student loan services in the fall. With continued uncertainty in the availability of FFELP Stafford Loans and private student loans, now more than ever students are encouraged to keep in touch with their financial aid offices, and also to explore alternate ways to find money for college. Many universities and state governments are continuing to look at adding new grant programs, with North Dakota being the latest to introduce legislation to provide a new $2000 state grant to its residents attending college in-state.
In addition to grants, scholarships remain excellent resources to pay for school. Students can conduct a free college scholarship search on Scholarships.com to find out instantly which scholarship opportunities may be open to them.