Credit Crunch Puts the Squeeze on Student Lending Options : Families, Don’t Wait! Start Shopping Around For Resources to Pay the Fall Semester Bill

NEWTON, Mass. (EMWNews) July 16, 2008 —

The credit crunch has arrived at college campuses and many families who

qualified for student loans last year could find themselves without

loans this year if they wait until August to apply. The first tuition

bill is just hitting the family’s mailbox,

leaving only 60 days to determine how to pay the bill. With even more

limited savings and home equity, families are going to have to rely on

student loans now more than ever. Yet less lender participation combined

with tougher credit restrictions for private loans leave families in a

challenging position.

This spring, a leading student loan lender warned that the demand for

student loans will “significantly exceed

lender supply” for the 2008-2009 school year,

and another Top 5 lender announced it will not make any private student

loans this year. Clearly, 2008 will be a particularly challenging year

for students and families to secure the financing they need to cover

college costs. Fortunately, there are loan options available and online

resources to turn to as many families that are shopping around have

realized.

“For students and families who need to borrow,

one thing is clear, they need to start shopping around for options now,”

said Kevin Walker, CEO of SimpleTuition,

Inc., a company dedicated to helping students and parents make sense

of education financing choices. “Borrowers

need to start early this summer and allow extra time to secure student

and parent loans. Money is still available, but the landscape is very

different this year.”

There are several factors driving the credit crunch this year and though

access to student loans is more limited, there are opportunities.

SimpleTuition offers the following tips to families:

• Do your homework now. By shopping around early, there is a greater

  likelihood in finding the student loan options that best fits your

  financial scenario.

• Turn to the Web. A few established companies such as www.simpletuition.com

  are fast becoming valuable in the student loan search process. These

  online resources are objective and allow borrowers to research and

  compare loan options.

• Don’t assume you will qualify for a private

  student loan this year just because you did last year. With fewer

  funds available for private loans and tighter credit restrictions, it’s

  important check with current lenders to see if they are providing

  loans.

• Max out federal loans first before turning to private loan options.

• Evaluate alternative sources of financing. Peer to peer lending, PLUS

  Loans for parents and work study are a few other options.

Kevin Walker is available for interview.