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Posted: 10:33 PM Nov 12, 2008
Student Loans To Get a Boost From Bailout Plan
Originally, lenders bundled student loans and private investors would buy them. With a toxic economy, investors have shied away from buying up these loans.
Reporter: Ryan DearboneEmail Address: ryan.dearbone@wbko.com |
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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.



