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Fri October 23, 2009
WyoLoan will stop providing student loans
By Renny MacKay
Laramie, WY – The main student loan provider in Wyoming is suspending its loans, starting next spring. WyoLoan provides about two-thirds of all the loans to students at the University of Wyoming. The nonprofit company has provided student loans for almost 30 years. It will stop...largely because the Obama administration has proposed to have the federal government completely take over student loans.
The director of Financial Aid at U-W, Dave Gruen, says if this change goes through, it may actually make it easier for students: "We will just offer them a student loan under the federal direct loan program and they accept or reject it, if they accept it the money will flow into their account. So, they won't have to do anything with a lender, we'll do it on the backside on our side; draw the money down from the federal government and put it on the student accounts."
Gruen says interest rates should stay the same if the government takes over loans. Nationalizing the lending could save the federal government somewhere between 30 and 90 billion dollars over the next ten years. Opponents say it will eliminate competition and choice.