It's important to me, as the Dean of Student Financial Assistance, to reassure you that despite a series of negative developments that have increased lenders costs and reduced their profit margins, the likelihood of disruptions in the federal student loan arena remains very low for the upcoming year.  As always, we are working diligently to ensure that you have the most accurate information in a timely fashion, and I have personally continued to weigh in with state and federal agencies regarding lenders for our federal Stafford loans. 

However, it's important to note that some news reports fail to distinguish between federal and private student loans. As you know, the vast majority of student borrowers use federal student loans (i.e. Stafford, Perkins, Plus loans). That said, we do have a small percentage of students who rely on private student loans. Like other consumer loans affected by the subprime mortgage meltdown, private student loans will be costlier for some families at some institutions this academic year. But low-cost federal student loans are still available, and should not be affected in any substantial way. Even in instances where student loan providers have suspended their loan programs, other loan providers have stepped in to fill the gap.

Banks that have made a commitment to student lending have truly invested in their student loan programs, which they consider an important part of their commitment to their customers. They have a decades-long commitment to the student loan business, and assisting families with making college more attainable and providing more choice to students seeking higher education. Lenders are hoping that the financial markets improve and funds become more readily available for all lending community participants. In the meantime, some banks plan to expand their loan programs in the upcoming academic year to ensure that students have the funds they need to begin or continue their education.

We will remain actively engaged in the issues facing student loan availability. We are receiving news directly from the U.S. Department of Education, legislators, and lenders on these issues and will continue to inform you of any changes as the situation continues to develop. I recommend that families work closely with our financial aid counselors – not only to complete the financial aid process – but also in applying for federal student loans, which remain both the best choice as far as loans are concerned, and the most stable in this seemingly volatile economic climate. We also advise students and families to apply for financial aid early by completing the 2008-2009 FAFSA and the appropriate SHU Confidential Information Form, and to exhaust federal, state, and institutional aid before turning to private loans.  As always, we remain dedicated to our students and parents, most especially during these turbulent economic times.