News & Publications
Letter Home, Fall 2008
Financial Aid: Should You Be Concerned about Student Loans?
The nation's financial crisis has created some concerns for students and their families who take out loans to finance part of their St. John's education. But Paula Abernethy, the college's director of financial aid, has some reassuring words, at least for the short term.
"Despite the recent market activity, the lenders we have listed on our website remain committed to funding PLUS and Stafford Loans for the remainder of the academic year," says Ms. Abernethy. "We are in contact with lenders and have been assured that they will provide the funds for the spring-term loans."
About 65 percent of St. John's students take out federally backed loans to help finance their education, Ms. Abernethy said. Only 10 percent are borrowing from private lenders. "Because of tighter restrictions, private loans may be harder to get, even for those who have qualified for them in the past," she says.
Ms. Abernethy says lenders indicate that they will continue to offer federally backed loans next fall. She's found the most reassuring news coming from the Department of Education, which has stated that it will make student loans directly if private lenders pull out of the loan market. "Even in the worst-case scenario, we've been assured these loans will be there," she says.
If the Financial Aid office becomes aware of any information that will affect student loans or any changes to this information, parents and students will be notified as quickly as possible. In the meantime please contact the Financial Aid Office, 410-626-2502, if you have any questions or concerns.