BOSTON -- The Massachusetts Educational Financing Authority is suspending all federally guaranteed student loans effective July 1st.
MEFA says the mortgage crisis and a series of federal changes have made it difficult for the nonprofit state organization to secure funds for its federal education loan programs.
The financing crisis has stopped more than 50 student lenders to stop making federally guaranteed student loans nationwide, either temporarily or permanently.
Congress is being pressed to help the distressed market.
Executive Director Tom Graf says MEFA will not accept any new Federal Consolidation applications, urging parents and students to make alternative plans for the fall 2008 semester.
Graf says private lenders are expected to take up the federal loans.
(Copyright (c) 2008 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
Bishop asked Patrick Kennedy not to receive communion Deadly crash in Sumner Tunnel kills one woman Fuel spill shut down Route 3 in Chelmsford MBTA driver honored at Gillette Stadium Bill targeting elderly drivers stalls on Beacon Hill Man kidnapped, robbed in Jamaica Plain Andover man arrested at Purdue University
