Released: August 26, 2008

Options on dwindling student loans

Source: Sandra Block, USA Today

Your child will be a college freshman this year, and you’re a little apprehensive. Will she pass Econ 101? Eat her vegetables? Come home for Thanksgiving with an anarchist boyfriend and a full body tattoo?

For some parents, though, such worries are eclipsed by a more immediate concern: paying the bill for the coming semester.

In recent months, several large lenders have stopped providing private student loans, stranding families that were counting on private loans to cover some of their costs. Last week, Education Finance Partners, the fourth-largest private lender, announced on its website that it had ceased operations. Borrowers who had been approved for loans from the company have been forced to look elsewhere for money.

Even at this late date, though, families have options. 

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