Some lenders stopping loans to students at WI tech colleges and UW extensionsStudents at Wisconsin’s technical schools and University of Wisconsin two-year colleges will soon have fewer options to get tuition money.
Students at Wisconsin’s technical schools and University of Wisconsin two-year colleges will soon have fewer options to get tuition money.
Chase Bank and Citibank say they’ll no longer provide loans for those students because the shorter terms make them unprofitable.
Meanwhile, TCF and Student Loan Express say they’ll quit providing all student loans.
AFG Provincial says it will stop loaning money to tech students in Milwaukee.
All told, Milwaukee Area Technical College is losing five lenders that provided about half the school’s loans.
Meanwhile, state technical college president Daniel Clancy says there are plenty of other options and students at most schools still have six to 20 lenders to choose from.
He says the Great Lakes Higher Education Corp., will contact those who are getting cut off.
School officials say it should not be much of a hassle to change lenders. More than 50 college lenders have pulled out since Congress limited their federal subsidies last year.
Mark Rodgers of Citibank says banks continue to suffer from mortgage defaults and that’s playing a role in the college loan market, too.