Massachusetts Educational Financing Authority announces no funding available for student loans in Fall 08

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The Massachusetts Educational Financing Authority yesterday said it will not be able to provide student loans this fall for the first time in its 26-year history, leaving more than 40,000 families without an important source of tuition funds just weeks before college classes begin.

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It is now contacting the tens of thousands of students to whom it has made loans in the past, urging them to seek other options.

"As a result of our problems and the continued dislocation of the capital markets, we have been unable to raise funds for the coming academic year," said Thomas M. Graf, the authority's executive director.

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The authority was created in 1982, after local colleges urged the Legislature to create an agency to help families cope with costs. The authority does not rely on state funds for its lending, but rather raises money in the bond market.

The agency's loans were available to Massachusetts residents attending school here and across the country and to out-of-state students attending college locally.

http://www.boston.com/news/education/highe...40000_students/

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