Tight Market for Private Student Loans

While the federal student loan system appears to be secure for qualified students, the market for private student loans has tightened:

About eight percent of undergraduate students take out private or state-sponsored loans that are not federally guaranteed. Borrowers with good credit records are not likely to experience any problem in getting an education loan, except that the number of lenders is fewer, and the interest rate will be higher.

Students or parents with no credit history or a poor credit history will have more difficulty getting a private student loan than they did in the past, especially at certain types of schools.

Source: ABC7Chigago.com