Economic crisis will not affect federal loans
IU students with Stafford loans have nothing to fear about losing money due to the struggling economy and the credit crunch, IU officials said.
“It’s important that students remember that their federal Stafford loans come directly from the Department of Education,” said Roy Durnal, senior associate director of student financial assistance. “There is no lender involved. It’s directly from the Department of Education. Students at IU-Bloomington won’t have a problem because of the direct loan program that we participate in.”
However, Durnal said, many students have to turn to private loans and parent loans to pay for the full costs of college. In these areas, students might run into trouble.