DES MOINES, Iowa
A tightening credit market could make life increasingly difficult this fall for college students who may not find money available to borrow or could be forced to ask their parents to co-sign a loan.
The news on Wednesday that Iowa Student Loan would stop taking applications for private loans comes at a time when students are already carrying heavy debt and are working doubly hard to pay rising tuition costs.
“Its unfortunately forcing people into a state where they’re always sick, depressed or mad at themselves for something or mad at their parents for not being able to help out,” said Chris Civitate, 20, of Des Moines.
Iowa Student Loan, a private nonprofit organization that provides about 90,000 college loans to Iowa students each year, made the move because of tightening of consumer credit markets.
CEO Steve McCullough said private loans are becoming harder to provide because the market for selling the bonds that backs the loans has evaporated.
McCullough said the organization will stop taking private loan applications in April.
