Student Loans Saved FRANKFORT, KY (WEKU) - Things are looking up for Kentucky college students worried about the availability of student loans this fall.

The Student Loan People, as they're known in Kentucky, ran out of money last week, but if you need a loan, relax. The state has a plan. It will purchase 50-million dollars in bonds and use the proceeds for student loans. Jim Ackinson of the Kentucky Higher Education Student Loan Corporation says the loans then will be purchased by the federal government.

(Fifty-million dollars, which is all we need to provide some amount of liquidity to originate loans, which will subsequently be put back to the feds in these participation pools.)

Lawmakers on the Bond Oversight committee had a lot of questions about the deal, but gave it unanimous approval. An executive branch oversight committee has also approved the plan, which will now move forward. The proposal was necessitated by the national collapse of credit markets, which drastically reduced the amount of money available for loans. © Copyright 2009, WEKU