On Thursday, July 31, a group of 39 state senators signed a letter urging Governor Deval Patrick to act quickly to assist the Massachusetts Educational Finance Authority, the quasi-public lending concern that this week announced it has no money for private student loans this fall.According to reports released last week, more than 40,000 students will be unable to acquire loans this fall.
The Massachusetts Educational Financing Authority is a nonprofit lending authority that has been granting loans to students for 26 years. Last year the authority gave out $510 million dollars in student loans. The loans have a low fixed rate, which is optimal for students attending school in Mass.
This year, 40,000 students will be out of luck because the authority is facing fiscal difficulties. A month ago the authority thought they would be able to find money for private loans, but a bond insurer faced a possible downgrade in its credit rating, causing the loan rates to increase.
Thousands of families are nervous, and are running out of options. The authority is currently contacting the families impacted by the news urging them to seek federally backed loans, then shop for private loans based on the school's recommendation.
Lois Rosenthal of Winthrop adds, "I'm a little dismayed to hear that they won't have money, because it's a jungle out there, getting private loans."
No comments:
Post a Comment