Litigation

Student Loan Crisis

By John Darer

Sallie Mae says it cannot write money-losing student loans indefinitely.

"Today's environment is the most difficult we have seen in our 35-year history of student lending," Sallie Mae CEO Albert Lord, quoted in Thursday's 5 Minute Report by Agora Publishing. ?Under current conditions loans can only be made at an economic loss.? Some experts believe that, without government intervention or a drastic improvement in lending market conditions, Sallie Mae may actually stop writing new federally backed student loans.

Federally guaranteed student loans cap interest rates at 6.8 percent.

Click here the Associated Press coverage for the story as published Thursday on Boston.com

The above news unfortunately highlights that uncertainty has even crept into the important area of childrens' education.

Settling plaintiffs with an interest in sending their children to college, and their attorneys, should consider the use of structured settlements to help assure that funds will be there at the time the child enters college or university. Pairing a structured settlement with a spendthift trust or a special purpose education trust may be helpful to prevent wasteful dissipation of funds intended for college.

For more information on Structured Settlements For Children and Minor Wards please click here

Full post as published by Structured Settlements 4Real on April 21, 2008 (boomark / email).