Oklahoma students feel financial sting of credit crisis
Oklahoma students feel financial sting of credit crisis
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By Susan Simpson
Published: August 25, 2008
TULSA — University of Tulsa law student Hugh Robert didn't even try to get a private loan for his education this year.
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Good credit, co-signers are often needed
Some are scrambling to find lenders because many banks — reeling from a national mortgage crisis — have stopped offering student loans or tightened criteria by requiring higher credit scores or co-signers.
Mark Kantrowitz, publisher of the Web site finaid.org, said some banks have no choice because their investors are backing out of securing the loans.
He suggests that students talk to their college's financial aid office about finding other lenders, both federal and private, and to also seek scholarships.
Lenders still available in Oklahoma
In Oklahoma there are still a number of lenders making loans to students, said Denise Flis, director of student financial services at Oklahoma City University.
"If a student was with one lending institution that is no longer doing the loans, they are choosing another,” Flis said. "It's maybe a little bit of an inconvenience.”
Ivan Orndorff, another law student at TU, said he's still worried — and still looking for aid after he was dropped by his previous lender.
"My experience has been that it is extremely difficult to secure the private loans without a sparkling credit history,” he said. "Persons my age who have been in school and not working rarely have the credit worthiness to secure the private loans. Most of the time one is left to rely on co-signers, generally parents, who also must have very good credit.”
Nationally, about one in five students seek private loans for college. The average amount borrowed is $7,694, according to a survey by lender SallieMae.
Related Topics:
Education, Business, Higher Education, Personal Finance, Consumer Credit and Debt, Student Loans, Law Schools, Financial Planning, Personal Budgeting, Paying for College, Personal Credit Ratings
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