by Toby Marin
Exchange Staff

     What would happen if you suddenly weren't able to receive the aid needed to pay for your college education? Sophomore Jennifer Blais is one of the many students who relies on financial aid and student loans to get through college. "Without it," said Blais, "I wouldn't be able to attend Franklin Pierce."

     Tuition costs are often too high to pay off without assistance. Many adults who work full time jobs are still paying off their college loans today. Parents start saving as soon as their first child is born in hopes to send them to college; while some students have to work multiple jobs in order to pay for an education.  "My parents and I are splitting the cost of college," said Blais.

     Loan operations have been dealing with two problems as of late. Congress reduced subsidies to lenders in the federal-guaranteed student loan program. In addition, investors have recently shied away from purchasing securities backed by student loans, making it more costly for the lenders to raise the capital they need. The College Loan Corporation, a large lender, announced that it was leaving the federal loan program.

     Sallie Mae, the largest student lender, and the one used most by students here at Franklin Pierce, has tightened loan standards which could be a blow to commercial colleges and their students. However, Kenneth Ferreira, the Executive Director of Student Financial Services, shouldn't worry about receiving Sallie Mae's loans for the upcoming year. "Sallie Mae is the largest student loan provider in the country, and they aren’t going anywhere. They are able to offer us assurance other loaners can't," said Ferreira. "Sallie Mae has given us guarantees. Students who have the Sallie Mae loan in 2007, 2008 are most likely going to have it in 2008, 2009."

     The Pennsylvania Higher Education Assistant Agency, which is one of the largest student loan operations, announced that they would suspend making federal guaranteed loans starting in early March.

     Ferreira also brought to attention alternative loans. "Some loans won't exist in 2008-2009. We will send out emails and work with students on their funding if this is the case."

     While Education Department officials acknowledge the uncertainty in the credit markets, they have repeatedly said that students should have no trouble obtaining a federal loan to pay for college.