Emergency student loan advances ready to process
May 6, 2008
Sedona, Arizona (WiredPRNews.com) — In the wake of governmental strides to uplift the sagging economy, a report issued by The Wall Street Journal cited a letter distributed by the U.S. Education Department noting that emergency student loan advances will be processed by June 1.
The loan advance plan surfaced as a result of the Education Department’s financial suffering which filtered down to students and colleges alike. According to the report, the “student loan market stabilization plan [sic] is aimed at helping lenders who have warned of a potential loan shortage in coming months as millions of students seek financial aid for college.”
The plan is expected to be signed into law and will allow lenders to funnel money into the listless secondary market for “federally guaranteed student loan debt.” Additionally, a “lender of last resort” program will allow the Education Department to distribute funds for loans to state guaranty agencies. This move will alleviate pressure for students and colleges in the event that they are faced with loan shortages.
The letter documenting this approval to process was sent Monday to state agencies enforcing the program.
Wired Education Reporter
