Student Loans To Get a Boost From Bailout Plan
Student Loans To Get a Boost From Bailout Plan Save Email Print
Posted: 10:33 PM Nov 12, 2008
Last Updated: 10:33 PM Nov 12, 2008
Reporter: Ryan Dearbone
Email Address: ryan.dearbone@wbko.com

A | A | A

Originally, lenders bundled student loans and private investors would buy them.

With a toxic economy, investors have shied away from buying up these loans.

Now, as a part of the Federal government's plan to fix the economy, its willing to shift some of its original focus to help higher education.

Scott Hiles is looking forward to starting college in the fall, but he's still trying to figure out how he's going to pay for it.

"I'm applying a couple of scholarships but usually those aren't going to cover the full cost of college, so definitely going to need some student loans," says Hiles.

His mom, Gail Hiles has been hoping Scott's grades will keep him from having to get student loans.

"He's got good grades and all that components of what they look for in scholarships, so we're hoping that will help," she says of her son.

If Scott does have to apply for loans, the "Bailout Plan" from the Federal government could guarantee loans for him and the thousands of others trying to pay for college.

"Hopefully it will just help them and give them some assurance that loans will be available to them," says Cindy Brunette, Director of Financial Aid.

Burnette says public schools like Western haven't really suffered so far.

Yet a move like this will provide a "temporary" shot in the arm for students.

"I think this is band-aiding the current problem and I think until the economy levels out. This was something needed to provide the "liquidity" for those loans," says Burnette.

While Scott isn't exactly sure where his tuition money will come from... he's fully behind a portion of the bailout money going to aid his education.

"If the bailout includes education and student loans, then obviously its going to mean more money for the seniors that are graduating and trying to go to college. If they really want to go. There will be money for them," says Hiles.

Burnette says according to a study WKU conducted a couple of years ago, Kentucky has one of the lowest rates of people using student loans.

The bailout change would also help credit cards and car companies.

More Stories
Bicyclists Celebrate with Patriotic Parade

Celebrating the True Meaning of July 4

Barren River Lake Fireworks Show Back on Track

Putting Fireworks Display Together Is Hard Work

Church Members Sell Fireworks For Good Cause

Free Fireworks Show Tomorrow

WRECC Linemen Honored As Hometown Heroes

Holiday Travel: Stay Or Go?

Post Your Comments
First Name:
Location:
Enter Comments: characters left
Email (optional):
By posting this comment I have read and agree to the Terms of Use and Privacy Policy:
You must agree to the Terms of Service to continue.
Read Comments
Comments are posted from viewers like you and do not always reflect the views of this station.
Posted by: Anonymous on Nov 13, 2008 at 03:28 PM
I am almost out of time on my deferrments and as a single mom paying rent I can't afford to pay even the minimum of $200/mo on my loans. If I do that my child and I would have to live out of my car. What about us?

Posted by: chris Location: bowling green on Nov 13, 2008 at 12:20 PM
What is going on in washington? Giving students money for loans? Please if they need money then let them work for it. I never got a loan nor a grant for my education. I worked. The public was led to believe that money would help the economy. But instead it has helped failing companies who give wild parties and million dollar bounces to the top exces. An now they want to help credit card compaines. Well we all know how credit card compaines stick it to their customers. And then the auto market wants some of it. I say NO MORE. Pull the plug on this bail out before it gets out of control any further.

Posted by: JD Location: Bowling Green on Nov 13, 2008 at 10:28 AM
thats is a great concept to aid those wanting student loans, but what does that do for the ones that have already graduated and are trying to carry a 35-40k student loan. I dont know about you but $400 a month to pay it back is pretty steep.

Win a $400,000 Home!
Unable to see the video? Download Flash Here.

WBKO Features
WBKO Blogs
Information on a variety of topics, from food and entertainment to the coming digital changeover, written and updated by the WBKO staff. Get your questions answered here!
WBKO Hometown Hero
Do you know someone special who deserves to be a Hometown Hero? WBKO and Hughes & Coleman invite you to nominate them here!
Contests and Giveaways
Register to win great prizes from WBKO and our fantastic partners
Recipes
Cook up something delicious with one of our featured recipes!
Polls
Let your voice be heard by giving us your opinion on our daily poll question.
Obituaries
Honoring those who have passed on. Updated daily.