| Rules for student loans get tighter
Now the credit crisis is spilling over into college-student loans.
Sallie Mae, the nation's largest lender to college students, will no longer make private education loans to students who are higher credit risks, so-called subprime borrowers. Private student loans, which carry higher interest rates than federal loans, help bridge the gap between tuition costs and federal aid.
Sallie Mae's change will hurt for-profit education companies because they rely on students' access to private loans more than non-profit colleges and universities, student-loan experts said. On Tuesday, a number of education stocks, including Hoffman Estates-based Career Education Corp., experienced big sell-offs on fears that the schools could see a decline in enrollment.
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New Hampshire Primary Coverage - Tuesday, January 8, 6:00 p.m. - 1:00 ...
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'Distractions' Crushed Sallie? Lord, That's Lame
How am I? Don't ask. The Business Press Maven's soul feels like it's lost in a howling desert. If you think the business media is ridiculous for constantly parroting the excuse by retailers that "the weather ate my sales," we've now seen worse. .
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