Education leaders say the meltdown of the sub-prime mortgage market has made it more difficult for students to get private loans.

Jessica Forres reports...

Boomp3.com'>LISTEN TO THE STORY THAT AIRED ON WAMU RADIO.

Lee Quinn is visiting her son...a freshman at The George Washington University. She's paid for his first semester.

WE HAVE HOME EQUITY LOANS AND THAT'S WHAT WE WILL USE FOR SOME OF THIS AND I WILL WORK FOR THE REST OF MY LIFE TO FIGURE THIS OUT AND NEVER RETIRE.

Some students aren't as fortunate.

Peter Warren with the Education Finance Council says federally guaranteed or private loans are some other options. He explains federally guaranteed loans have limits of just a few thousand dollars a year. That's chump change for a school like GW where it costs more than 20-thousand dollars a semester.

IF YOUR NEED IS BEYOND THOSE LIMITS THAN YOU NEED TAKE OUT ALTERNATE PRIVATE LOANS, ESPECIALLY BECAUSE IN THE PAST HOME EQUITY LOANS WERE A COMMON SOURCE FOR THAT ADDITIONAL BORROWING

But the mortgage crisis has caused many lenders to exit the student loan market. To get a loan now Warren says, the bar has been raised.

LET'S SAY LAST YEAR, YOU NEEDED 650 FICO SCORE TO QUALIFY FOR A PRIVATE STUDENT LOAN, NOW IT'S GOING TO BE MORE LIKE 750. AND SO THERE ARE SOME STUDENTS WHO QUALIFIED FOR A PRIVATE LOAN LAST YEAR, I THINK, ARE STRUGGLING TO FIND PRIVATE LOANS THIS YEAR. AND ALSO OF COURSE RATES HAVE GONE UP.

Warren says about 80 percent of students hold federally guaranteed loans and about 20 percent have private loans.

Jessica Forres WAMU 885 News.

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The credit crisis brought on by the collapse of the sub-prime mortgage industry has some students worried about their student loans.

Jessica Forres reports…

Boomp3.com'>LISTEN TO THE STORY THAT AIRED ON WAMU RADIO

Jared Hall is a Master's student at The George Washington University. Private and government loans help finance his education.

He says he didn't have a problem getting a private student loan this year.

I GOT IT THROUGH CITIGROUP THEY'RE ONE OF THE BANKS THAT'S STILL AROUND. THAT WAS AN ADDITION TO THE GOVERNMENT LOANS.

He is worried though...about next year.

I HOPE THAT THE CREDIT DOESN'T DRY UP BECAUSE THAT WOULD BE A BIG PROBLEM FOR ME. I STILL NEED MORE MONEY TO GO TO SCHOOL, ESPECIALLY AT GW BECAUSE IT'S A PRIVATE SCHOOL.

Peter Warren with the Education Finance Council says the mortgage crisis has caused many lenders to exit the student loan market...He says the requirements for getting a loan are getting tougher and interest rates are increasing.

I THINK IT WILL CONTINUE TO BE CHALLENGING AS LONG AS THIS CREDIT MARKET SITUATION EXISTS.

Even if the 700-billion dollar bail out plan is passed by the house, Bill Sheibler with the United States Student Association, says it won't help student debt.

WE'RE ALL ASKING THE QUESTION, WHERE IS OUR GOLDEN PARACHUTE. WHY ARE WE ALLOWING TO BAIL OUT WALL STREET ON THE BACKS OF STUDENTS. WHERE IS THE BAIL OUT FOR THE STUDENT DEBT AND THE ECONOMIC CRISIS STUDENTS ARE FACING.

He says the average student loan debt among graduating seniors is about 20-thousand dollars.

Jessica Forres WAMU 885 News