Federal student loan proposal would have local effects

Laramie, WY – President Obama is proposing that student loans should now come from the federal government rather than private companies. This could mean the end of the Wyoming Student Loan Corporation, a non-profit company that has offered loans for almost 30 years in Wyoming.

President Phil Van Horn says that his business knows the state well and can respond to local needs, like the downsizing of a company. "We're prepared to work with students through deferrments, forebearances," he said, "it's not remotely like the centralized government lending program would be attentive to educational workforce issues here in Wyoming."

Currently, groups like Wyo Loan raise private money by issuing tax exempt bonds. The interest rates are determined by Congress.