Last updated 4:44PM ET
December 15, 2017
WOUB Local News
WOUB Local News
Credit crunch hits student loans
(2008-06-11)
(WOUB) - Driven by the credit crunch, some banks are cutting back student loan programs leaving college students and their parents looking for ways to find money for school.

Ohio University's Director of Student Financial Aid Sondra Williams says about two-thousand students at the main and regional campuses are involved with private lenders.

And so far, only four private lenders have pulled out, affecting about 60-students.

Williams says while some students are still having a hard time getting money, the federal government is also having a hard time backing these private lenders.

"I think they probably have their hands full backing up their federal loans and you know, it's a big business-billions of dollars a year for students. So I don't think it's anything that they've ever really been involved with...with the private industry. So they've never gone there," she said.

Ohio University is also part of the Direct Loans Program, which solely deals with the federal government, the student, and the school.

Williams says this route has been safe.
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