Credit Woes Hit Funding For Loans to Students (The Wall Street Journal)

The credit crunch that has so far caused more than $100 billion of losses for big Wall Street investment firms now extends to students in Michigan, and it could soon hit many other borrowers, ranging from California museums to the prestigious Deerfield Academy prep school in Massachusetts.

"If student loan providers are having trouble raising money, then that’s a concern for us," says Justin Draeger, spokesman for the National Association of Student Financial Aid Administrators. He says the loans tend to go to low-income students. "If there’s a problem with getting the funds, then they may not be able to pay for their education."

The full article was originally published in the Wall Street Journal on 2/13/08.