PHEAA Temporarily Suspends Federal Student Loans (Associated Press)
"Pennsylvania's student-loan agency will temporarily stop making new loans through a federal program in response to a credit crunch that has created turmoil in the bond markets," the Associated Press reports. "The Pennsylvania Higher Education Assistance Agency decided two weeks ago to suspend loans made outside the state through the Federal Family Education Loan Program. The program provides federally subsidized, low-cost student loans to about 500,000 Pennsylvania students. Instead, the agency will steer prospective borrowers to banks that are still participating in the $50 billion program, which should assure a 'seamless transition,' Preston said. At the same time, it will continue to originate, guarantee and service loans."
You can read the complete February 26, 2008 Associated Press article on-line.
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