Prometheus 6

“Banks are not philanthropic agencies,” said Pat Watkins, director of financial aid at Eckerd College in St. Petersburg, Fla. The institution was recently informed by Wells Fargo that the bank would not extend loans to its students anymore, Dr. Watkins said. If lenders cannot make the profit they require on loans, she said, “a lot of the banks will just say, we’re out of the business completely, you pushed us out.”

Bill Promotes Universal College Loans
By JONATHAN D. GLATER

Responding to reports that some lenders have stopped offering federal loans at community and other colleges, two Democratic senators introduced legislation Tuesday to prohibit lenders from picking and choosing among institutions.

Under the proposal, lenders that participate in the federal loan program would have to extend credit to any eligible student, regardless of such things as income or the number of years of education, as long as the college is part of the program.

The government already guarantees the loans at nearly full value.