Will the Bailout Help Student Borrowers?

If you're enrolled in online classes through a community or non-traditional college, you may have trouble taking out a private student loan this year. Dozens of lenders have already eliminated their student loan programs since the beginning of the 2008.

eSchoolNews reports:

"Students seeking to attend the nation's largest universities whose loan applications come with credit-worthy cosigners likely will have little trouble obtaining financing, experts say--but community college students with scant or checkered credit histories might be driven to nontraditional payment policies.

The $850 billion bailout package passed by Congress earlier this month won't have an immediate impact on student loans, but it could be a first step in unclogging the credit market and making loans more widely available, campus officials said. Until then, many college students will have to rely on federal money flowing directly from the federal government."

There's no guarantee that the bailout will make private student loans more available. But, many online learners are hoping that lending markets recover before students forced to postpone their studies or rack up credit card debt.

It's important to note that those taking out federal student loans (i.e. loans applied for using the FAFSA) are not having the same problem as private borrowers.

See Also:

• Federal Student Loans for Online Learners
• How to Convince Your Employer to Fund Your Online Education
• Types of Financial Aid