Students May be Left with No Cash for College

Your teen may need to look into paying for college soon... As lenders drop out of the student loan business left and right because of the economy.

More than 100 lenders have stopped offering student loans... Including many in our area.

Now students are looking for funding, while officials try and prepare high schoolers to think ahead about funding.

The biggest group hit will be students who have already taken out loans.

Jim Reed with WTAMU Financial Aid says, "The thing that we are most concerned about is many students who have borrowed previously, their lenders may have suspended activity and consequently they are going to have to select a new lender."

Reed and Officials with Amarillo college say students will be able to get funding through other lenders still working with the institutions... But students at other universities may not be as lucky.

Reed says, "At an institution that has lower cost such as ours is the number of borrowers who must pursue alternative loans is much lower than it would be for instance at a private institution or a high cost public institution."

There are other options... But some may require waiting till next semester or paying more.

"At this time of the year scholarships are not going to be to available." Reed says.

Assistant Vice President for Student Loans at Herring Bank, Zack Workman says, "A regular loan might involve credit checks and history, where as the student loan as long as its processed in the schools financial aid office and it goes towards their educational expenses they can get it and it's not credit based."

Both Reed and Workman suggest starting early.

In fact.. Some experts are now saying students need to know how they are going to pay for college by their junior year in high school.