Student Loans to Become More Expensive

The credit crunch that rattled mortgage lenders has spread to the education lending market, with dramatic results. If the situation doesn't ease in coming months, student lending experts say, borrowers can expect:

• Higher loan costs.
  
• Fewer lenders, which could mean tens of thousands of college students scrambling at the last minute to find money.
  
• Tougher standards that could prevent some students from borrowing at all.
  

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 This is caused mainly by three factors: defaults on loans are up, much of the investors for the loans have disappeared, and other sources of money are hard to come by. So, even the most reliable and cheap loans have been affected by the sub-prime loan crisis. The connection between normal loans and college loans is to close to separate the college students from the fallout.
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