25 April 2008
Students attempting to obtain loans for postgraduate or second undergraduate courses could find that their options are limited by the credit crunch, one body has observed.
The National Union of Students asserted that in some cases banks may wish to minimise risk in the aftermath of what has happened in the US.
Head of Social Policy at the organisation David Malcolm noted that American firm Sallie Mae, which used to offer credit to learners in Britain, has pulled out of the market in light of recent financial turmoil.
"They might be under threat if banks want to reduce the exposure to risk . They are much bigger amounts of money and there is more opportunity to default on that," he stated in relation to professional loans.
However, Mr Malcolm remarked, services such as overdrafts are unlikely to be affected by the harsher conditions imposed by banks.
Repayments on Sallie Mae loans could be deferred for a certain period of time when they were still available.
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