Loan crisis hits campuses

Lacey Mogy didn't know much about student loans when she enrolled this year at the School of Communication Arts in Raleigh -- except that she needed several if she was going to study digital film production.

Then her mother received a letter telling her that one of those loans won't be renewed next year. The lender is getting out of the student loan market.

Now Mogy is quickly learning about the link between the national credit crunch and the availability of student loans for fall.

The first lesson she learned is one that higher education leaders want to stress: The vast majority of students will be able to get the student loans they need before classes start in the fall.

But decisions by more than 50 lenders to scale back participation or drop out of the federally guaranteed student loan program has rattled Congress and triggered proposals to make sure student loan money keeps flowing.

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