Policymakers Seek to Ensure No Disruptions In Student Loan Availability

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Policymakers Seek to Ensure No Disruptions In Student Loan Availability

by CHARLES DERVARICS , May 15, 2008

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As for those who must borrow for college, FinAid.org’s Kantrowitz suggests trying to minimize debt. Students should use federal loans first and get a co-signer for any private loans with higher interest rates.

For their part, colleges should consider switching from FFEL to the Direct Loan program, which relies directly on capital from the federal government. Congress should monitor the issue through the summer. “They need to act to prevent a crisis,” he says. “They can’t put a Band-Aid on it.”

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