Wachovia Suspends Its Undergraduate Private Student Loan Program

Student Loan Girl — Thu, 07 Aug 2008 00:41:00 GMT

After posting an $8.9 billion second-quarter loss in July, Wachovia Corp. announced on Tuesday that it would stop making private student loans to undergraduates (“Wachovia to Stop Writing Private Undergrad Student Loans,” CNN Money, Aug. 5, 2008).

Wachovia representative Ferris Morrison said the company’s student loan lending subsidiary, Wachovia Education Finance Inc., will continue to offer federal student loans, as well as private loans for graduate and professional education students. However, as of August 5, Wachovia is no longer accepting applications for private student loans for undergraduates.

“At this time, we felt it was prudent,” Morrison said.

Wachovia Education Finance, the sixth-largest provider of student loans, sent a letter to its borrowers on Tuesday informing them of the change, citing “the current overall financial industry environment,” reported Inside Higher Ed (“Quick Takes: Wachovia Abandons Private Student Loans,” Aug. 6, 2008).

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Wachovia Suspends Its Undergraduate Private Student Loan Program