Private Student Loan Funding Dries Up for South Carolina Lender
South Carolina’s largest student loan provider — the predominate lender of private student loans for the state’s two largest college campuses, the University of South Carolina and Clemson University — has run out of money to issue new private student loans, reports The Greenville News (“South Carolina Student Loan Corp. Suspends Private Lending,” Nov. 20, 2008).
South Carolina Student Loan Corp., which funded $48 million in private student loans and $500 million in federal student loans last year, will stop accepting applications for new private student loans immediately, affecting some 12,000 students who rely on these loans to supplement their financial aid.
The nonprofit lender initially anticipated it would have sufficient funds to meet the state’s demand for private student loans, said company president Chuck Sanders, but the credit crunch has made it more difficult for the lender to find investors willing to buy its student loans.
While the lender has been unable to secure new financing, South Carolina Student Loan Corp. will honor the private student loans it has committed to for the coming spring semester, Sanders said.
The state lender will still offer federal student loans, including Stafford student loans, to students attending any South Carolina college or university and to South Carolina residents who attend out-of-state schools.
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