Government Urged to Keep Student Loans Flowing

With parents being laid off and lenders going out of business, student loans are harder to obtain. The Grand Rapids Press Editorial Board urges the federal government to take all necessary steps to keep student loans flowing:

As the financial crisis and soaring tuition have increased demand for student loans, acquiring them has become more difficult. The federal government has wisely taken key steps to ensure student loan access -- actions that should prevent market disruptions that could derail the plans of thousands in their pursuit of higher education. There is a lot we don't know about the nation's economic future. What we do know is that if young people are to have a future, they need a college education or technical training.

Students and families need protection from the credit crunch that has emerged during this chaotic time. Federally subsidized student loans are considered low risk. That said, the problem has been primarily the lack of sufficient funds to make loans in the credit markets. As this economic mess has progressed, more and more lenders have been affected. Lenders have either scaled back or left the market, jamming up some students. Many parents of students, meanwhile, are laid off and watching their investment portfolios plummet.

Read the editorial at mlive.com.