Student Loan Corp. says no money for private loans

South Carolina Student Loan Corp. president Chuck Sanders said Monday the nonprofit corporation cannot sell bonds to finance the private loans because of the meltdown of the U.S. financial markets.

By: AP | WCBD
Published: November 25, 2008

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South Carolina's largest student lender has stopped taking applications for private loans, but will continue making federally backed loans to college students.

South Carolina Student Loan Corp. president Chuck Sanders said Monday the nonprofit corporation cannot sell bonds to finance the private loans because of the meltdown of the U.S. financial markets.

Sanders says the corporation will make all of the private loans already committed for the spring semester, but will stop taking applications until the market recovers.

Sanders says the Student Loan Corp. made private loans of about $70 million in each of the past two academic years. He says the federally backed loans totaled $450 million in the 2007-08 school year and $440 million the year before that.