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Too Cool For School: Round 2!
Silly lenders, loan money is for all students! In a recent proposal from senators Patty Murray and Christopher J. Dodd, all lenders that participate in the federal loan program will have to extend credit to any eligible student. Banks like Citibank, JP Morgan Chase, PNC and SunTrust thought they could pick and choose institutions, but ha! We’re glad that a legislator has stepped up and decided to do something about this.
The lenders claim that they were responding to the “small number of borrowers and the small amounts borrowed at certain institutions,” says The New York Times. Apparently, these lenders don’t realize that cherry-picking students who can receive loans will only hinder poorer students from having a college career.
Nevertheless, credit is tightening around this country and lenders are only looking to protect their stash of money. Kevin Bruns, executive director of America’s Student Loan Providers, claims that this legislation might in fact push banks to back away from offering student loans (Oy, we hope not!). All in all, if you’re looking for loan money from your school, all is well because Uncle Sam stepped in and forced those bad banks to fork over their money.
Tell us what you think about student loans. Have you considered using a student loan to pay for school? [The New York Times]