Student loans likely to be harder to get

Students at local schools still have access to loans and other financial assistance, but that money will likely be harder to get, cost more and offer fewer perks for good payment history.

So far, though, local financial aid officials, including Phil Asbury of UNC-Chapel Hill's Office of Scholarships and Student Aid, say they aren't hearing of major money problems among incoming students.

"Ultimately, students are going to find resources," said Jim Belvin, the financial aid director at Duke University. "The problem is that it is going to be more expensive."

Belvin explained that because banks can no longer make the profit margins on private students loans that they made in the past, many are pulling out of the business. Those that remain are scaling back on discounts and payment incentives.

He said, for example, that some banks no longer waive the 3 percent origination fee for student loans. Others will likely stop offering percentage discounts for making payments on time or enrolling in automatic payment deduction programs.

Danny Green, the associate vice president for enrollment at Meredith College, said one of the colleges' preferred lenders has stopped providing private loans to its students. He said the timing is particularly bad because the poor economy is increasing the need for many students to borrow money.

"I think our students will be OK because they can choose any lender that they like," Green said. "Not all colleges do that."

But he pointed out that, as students shop around for a private lender, they may run into some difficulties. He said some banks have increased their lending criteria, making it tougher for students and their co-signers to borrow.

Green said his staff will work closely with students to help them get the funds they need.

"We are going to provide assistance to try to make the process as easy as possible," he said.