December 17, 2008
In response to the turmoil that has engulfed financial markets worldwide, the U.S. Education and Treasury Departments have announced new steps to assure funding for federal student loans.
“There’s no reason to be concerned at all about the availability of federal student loans,” Robert Shireman, executive director of The Project on Student Debt, told a national newspaper recently. “Federal loans are available, because they are not really consumer loans; they are loans to the federal government, and investors like making loans to the federal government because they know they will be repaid,” he added.
“The Department of Education has reaffirmed its guarantee that all eligible students will have uninterrupted access to federal student loans for postsecondary education,” McGeorge Admissions Dean Adam Barrett said. “Despite unprecedented market turbulence, federal student loans continue to serve higher education uninterrupted.”
Officials of SLM Corp., or Sallie Mae, the largest private student lender, recently met with McGeorge officials to assure them that their company and other federal loan providers will help students seeking loans.
“We are dedicated to providing our students and their families accurate and current information during this challenging financial market,” Barrett said. “Our office will immediately inform all students of any situation that would negatively affect them. Right now, everything is normal but no student or applicant should hesitate to get in touch with us with any financial question.”