U of C cuts ties with state student loan agency

CHICAGO – The University of Chicago is cutting ties with Illinois’ student loan agency, forcing the school’s graduate students to look for new ways to obtain loans.

The university on Wednesday told students the Illinois Student Assistance Commission was unable to renew its line of credit because of the national credit crunch.

A third of the University of Chicago’s graduate students, or about 3,000 people, will now have to apply for loans for the fall semester through other lenders. School officials say students should still be able to secure federally subsidized loans. However, the students may not get as good loan terms.

By going through the university, students had no origination fees and a 2 percent interest rate reduction after the first 48 months of consecutive, on-time payments.

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