College students feel economic crunch with loans

By Rachel Gallaher
Weekend Edition Producer
Published: October 11, 2008

In today’s tough economy, college students are finding it harder to get loans for school.
   
In recent months, more than 50 lenders have suspended new government-backed student loans, or they’ve raised the interest rates for private loans as much as 19 percent.
   
Some schools have a direct loan program, and those funds are protected by the Department of Education.
   
But less than 50 percent of schools around the country participate in that program.
   
The bailout passed by Congress gives the federal government the authority to buy-up bad student loan debt.
   
Something many lawmakers say is a good idea.