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

TULSAUniversity of Tulsa law student Hugh Robert didn't even try to get a private loan for his education this year.

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When he applied last year, private lenders told him that because he owned a home, his debt-to-earnings ratio was already too high.

"It was discouraging to go through that process,” said Robert, 32.

So to pay for his degree, Robert took out the maximum in federal student loans. He also borrowed money from his family and charged to his credit cards.

He'll graduate this year with about $100,000 in education-related debt.

Still, Robert figures he's in better shape than some of his law school colleagues.

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.


 


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Diddo Burt, I took out a 4 year loan with Uncle Sam, using my hide as collateral, did my job dropping bombs on Saddam and his crew, came out alive to spend the next 4 years getting a degree @ UCO....free and clear
bob, Oklahoma City - Aug 25, 2008 at 1:01 pm
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to everyone, i apologize. if any of you ever see a comment i make that is offensive or crude or talks about drugs, please click on 'report offensive langauge' to remove it. try to get the point across to the oklahoman that i am not welcome here. tell everyone you see on here, if they see me comment, to ban it. thanks
Russ, Tulsa - Aug 25, 2008 at 12:27 pm
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I know people cant follow this model, but I got through college a bit longer by not borrowing a penny from anybody. I did it by working a full time night job. It was great though as the job allowed for me to complete homework and papers. I even recorded every lecture and replayed it during work. I graduated with a 3.8 gpa. The problem is finding that right night job. I fell backwards into it when O.U. could not find me a work-study job. I registered with the state OPM and they called me everyday with offers like trash collector, ride operator, or construction roustabout. Then they called out of the blue to offer a night watchman job and I grabbed it like hair on a monkey.
burt, edmond - Aug 25, 2008 at 10:09 am
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