Bye bye American Pie: students become the next victims of the credit crunch (The Guardian)

American students borrowing money to go to college could be the next victims of the global credit crunch as investors back away from traditionally low-risk securities backed by student loans. A state lending agency has suspended loans under a program serving students at some 100 colleges and universities. Experts fear that others could follow.

Justin Draeger, a spokesman for the National Association of Student Financial Aid Administrators, said: "Obviously we’re concerned, we’re troubled and we’re going to continue monitoring the situation."

But he added: "I don’t think we’re in any type of crisis with student loans. The majority of student loans are federal loans and we’re not seeing any indication that lenders are backing away from their federal obligations."

The full article was originally published in The Guardian on 2/14/08.