April 17, 2008- It’s happened in Iowa, Michigan, Missouri, Pennsylvania and now Massachusetts. College loan programs are being suspended due to the escalating credit crunch and weakening economy that continues to unravel every week. And just last week TERI, one of the primary guarantors of student loans declared Chapter 11. As reported yesterday, nearly 15,000 students in Massachusetts that previously qualified for the low-interest Stafford Plus loans from the Massachusetts Education Finance Authority (MEFA) will not be receiving money as of July 1st. MEFA was forced to suspend the loan program and now joins more than 50 other student lenders who have had to close shop.
In addition, FICO score requirements are tightening, meaning that families will have to clear a higher hurdle to be approved for financing. And with home mortgages and home values being hit, it will be difficult to secure funds from home equity.
The time to make your financing decisions is now, before the market continues to ripple and worsen! We are encouraging families to make use of the Connect! Finance Manager tools to ensure that they maximize scholarships, government loans and low-interest alternatives. In addition, be sure to utilize the Connect! budgeting tools so that you have a full perspective of your 4yr financial burden and can plan accordingly. But, by all means, take action NOW to secure your funds for next year!
Log-in to Connect! and utilize the Finance Manager! Call us if you have any questions or need assistance.
Check out the stories on the MEFA Announcement
WCVB-TV, Channel 5 (Boston, news clip)
WCVB-TV, Channel 5 (Boston, article)
WHDH-TV, Channel 7 (Boston)