Market may tighten for private student loans; federal programs largely unaffected

Paying for college is already tough for many students.

But with lenders tightening their belts as the credit crunch continues, those who rely on private lenders to pay for school soon may find non-government-backed loans harder to come by.

While little has changed to affect the availability of traditional federal student loans, financial aid experts are less certain about student financing offered by private banks.

As with the fallout from the mortgage meltdown — where lenders raised the bar for qualifying loans, such as requiring high credit scores — so the private student loans market is beginning to follow suit.

The result could leave students who rely on this market to top-up government maximums, or because they don't qualify for federal programs, short-changed.

The message at colleges in Charleston is: "Don't panic."

"We know of no student, yet, who has been told they can't have a student loan for next year," said Don Griggs, director of financial aid at the College of Charleston.

Read more in tomorrow's editions of The Post and Courier.