The credit crunch in the U.S. has forced many banks to curtail or discontinue their tuition loan business. In the past 12 months, 33 banks and lenders have permanently or temporarily closed their student loan businesses. Additionally, more than 100 lenders have cut back or eliminated their involvement with federally guaranteed student loan programs.
In the past 12 months, 33 banks and lenders have permanently or temporarily closed their student loan businesses. By March 2008, three of the banks that closed down funding were HSBC Bank USA, M&T Bank, and TCF Financial Corp that loaned more than $560 million of the $119.2 billion made in loans in the 2006 fiscal year.
Here are some of the things students have been doing to help fund college:
- Working more hours.
- Taking fewer classes therefore taking fewer loans.
- Apply for scholarships and grants.
- Families exploring PLUS loans.
- Some parents are taking home equity loans - provided they still have equity in their houses.
- Taking more classes for the same amount of money and graduate earlier.
- Finding less expensive schools and programs. Take classes at Community College and then transfer to four year schools.
- Big Student Lenders Suspend Business