2008 Woodie Awards
Partnership loan no longer available to students
Brittany Friesth/Staff Writer
Issue date: 3/27/08 Section: News
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Tracie Pavon, assistant vice president for enrollment and financial assistance, is surprised at the extent the economy has played on financial services.
"I don't think anybody ever thought it would hit student loans," Pavon said.
With the Partnership Loan unavailable, the significant change will be that students are no longer provided with an option to not have a co-signer. ISL was one of the few local lenders to offer this type of private loan.
"We're trying not to cause a panic," Pavon said. "This has been shocking because Iowa Student Loan has been the biggest provider of private loans in many Iowa schools, but there are many other private loans still available."
The Stafford, Perkins and Parent Loans for undergraduate students will not be affected. Although there will be no private lending available from ISL, these federal loans are serviced through the organization and will still be included in student financial aid packages.
Out of the 498 current students who have a partnership loan, 75 percent do not have a co-signer. Pavon feels confident a majority of students will have access to co-signers.
"We ran some reports to see how many students at Simpson did not have co-signers and whose parents were denied credit, and there were only 39," Pavon said.
Sophomore Steve Lovitt is apprehensive about this specific change because students now have to rely on parents or someone else to obtain a loan.
"I think it's horrible and now it's not possible for students who want to pay for college by themselves," Lovitt said.
Another problem for Lovitt is whether or not his divorced parents can co-sign.
"This puts a lot of tension on whether or not I can have a loan," Lovitt said.
Freshman Megan Ripperger has a partnership loan with a co-signer. Although she doesn't feel she'll be as affected by the change, Ripperger is concerned for those students who do not have a co-signer.
"A lot of people will be affected because Simpson is an expensive college," Ripperger said. "It's going to be harder for them to get outside loans because most lending places will not give students loans--they don't have established credit."
Viewing Comments 1 - 2 of 3
A little shocked
posted 3/27/08 @ 11:26 AM CST
I am shocked at Ms. Pavon's surprise that the subprime crisis is trickling into student loans. No one saw this coming? Is she even reading the news? Economists and business commentators (including most financial institutions) have clearly stated that student lending was NEXT on the credit crisis list. (Continued…)
Alum/Staff Member
posted 3/28/08 @ 7:19 PM CST
First of all, your "attack" on Pavon is totally unjustified & ignorant. She was simply stating that we thought the financial crisis would (& hopefully) effect other areas, rather than something that is so necessary for our country's young people. (Continued…)
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