US: Loan mess hits home for students

Todd Coffman thinks he's a good credit risk - but because he's studying at a community college, the banks suddenly seem to think otherwise, reports the Seattle Times. Coffman, 28, is halfway through a two-year X-ray-technology degree at Bellevue Community College. In the past year, he took out about $4,500 in federally subsidised student loans through Citibank. But turbulent credit markets prompted Citibank and other banks in recent weeks to stop offering student loans at many community colleges across the country.

When Coffman recently put in his paperwork to get next year's loans, the college told him Citibank was no longer an option. The same thing happened with a second lender. Finally, he obtained a student loan through Wachovia.

Students at community colleges across Washington are finding themselves in similar situations. And many will face more difficulties -- and costs -- when it comes time to consolidate loans from multiple lenders.
Full report on the Seattle Times site