Loan mess hits home for local students
Todd Coffman thinks he’s a useful credit risk
Coffman, 28, is halfway through a two-year X-ray-technology degree at Bellevue Community College. In the past year, he took out about $4,500 in federally subsidized student loans through Citibank.
But turbulent credit markets prompted Citibank and other banks in recent weeks to stop offering student loans at people common colleges across the country, including BCC. When Coffman recently put in his paperwork to get next year’s loans, the college told him Citibank was no longer an option. The same event happened with a second lender. Finally, he obtained a student loan through Wachovia.
But his headaches didn’t end there. He needed to correlative his manner of life expenses with secluded loans. He applied to lender after lender, about eight in all, divers of whom listed BCC as an approved campus. But he was rejected adapt to the occasion from time, even when his dad offered to cosign the loans. He finally landed a loan end a Bellingham credit union.
“I don’t see why in any degree bank wouldn’t want me,” said Coffman, adding that he’s got a good credit history. “It’s been a hassle.”
Students at common colleges from one side of to the other Washington are verdict themselves in similar situations. And many decree face more difficulties
“The last couple of weeks have really been something,” said Kim Matison, the director of fiscal co-operate with services at Tacoma Community College, where Citibank and KeyBank have just pulled out. “It’s one matter to read about it happening. It’s another to have it happen to you and your students directly.”
Matison said TCC had 10 lenders offering student loans last fall. That list is since down to six, and could presently be at five. Changes at Bank of America are forcing the college to consider dropping that lender.
Some fear the market could collapse further.
“If a part does happen, it’s likely to happen all at once,” said Matison, who before-mentioned she is monitoring developments closely.
Students in Washington take out about $900 million in student loans harvested land year, said John Klacik, the director of observer financial assistance for the state Higher Education Coordinating Board.
About 40 percent of the loans are made directly end the federal government and aren’t assuming by means of the market turmoil, he before-mentioned. That means students at the University of Washington, Western Washington University, Seattle University and Shoreline Community College
