Private Student Loans Drying Up

Getting a private student loan is tougher than Chemistry 101. Bank of America announced that they'll stop making private student loans, and others have been pulling out of the market in recent months.

With the ongoing credit crunch, money is hard to come by if there is any risk of a borrower default. As a result, you'll have to lean on student loans backed by the government more than you might have hoped. Government backed loans are great, but the amount you can borrow is limited -- often not enough to pay for expensive programs and living expenses.

Home equity lines of credit have gone the same way as private student loans: they're in short supply. If you're going to need money in the mid to long term you might plan ahead and get it while you can. [via Consumerist]

Will this affect you? Tell us about it in the comments.

Further reading:

• Student Loans 101