Thousands of Alaska college students and their parents anxious how they will pay for an education.

/Home/Student Loan Information by State/Alaska Student Loans

In-State College Loan Credit Crackdown

Matthew Simon
Updated: 05/01/2009 12:48:00 PM AKDT


UAA Financial Assistance Director Ted Malone is concerned that those in the greatest need will be unable to receive funding. Thursday, April 30, 2009. (KTVA)

In the session's final hours lawmakers passed a bill requiring good credit for in state student loans. It has left thousands of Alaska college students and their parents anxious how they will pay for an education.
Inside UAA's student union things are pretty quiet until you find a freshman like Ami Lyn.

"I'm going to be screwed," Lyn says. "I was just like really that's ridiculous"

University officials say Lyn's one


Ami Lyn, a UAA Freshman, believes she will be unable to qualify for a loan. Thursday, April 30, 2009. (KTVA)
of the 1500 Seawolves borrowing about $10 million in-state student loan dollars to pay for school.
UAA Financial Assistance Director Ted Malone says, "It could be very disastrous for students who really need those funds to continue."

A little more than 60 hours before the 2009 session ended lawmakers unanimously voted to approve the credit crackdown.

Lyn says, "And then all of a sudden they're like you have to have credit to get a student loan."

Lyn's not alone. University officials say 80-percent of students currently receiving in-state loans will be affected by this policy.

Malone says, "Between 75 to 80-percent of students between 18 and 29 are likely not to have a 680 score."

680 is the credit score in-state student loan seekers will need. Otherwise, they will have to get a cosigner.

UAA Freshman Nick Markadakis says, "My mom is probably going to have to consign all my loans this year."

Alaska Student Loan Corporation officials say they had no choice but to request lawmakers make the change. Because the mortgage crisis means lenders now view students as risky lendees.

Malone says, "And there was a real tightening of the market. Especially for the non-federal loan programs."

The UAA Freshman Nick Markadakis expects that his mother will be forced to cosign his student loans for the upcoming school year. Thursday, April 30, 2009. (KTVA)
saving grace, officials say students should look for, are more federal loan dollars, some from the stimulus package, pouring into the state.
"So that even a freshman student next year should be able to borrow at a minimum $7500 under the federal program, Which that nearly compensates for the $8500 loan program that may be more difficult to get." Malone says.

"I filled out my FAFSA and I'm suppose to hear back from them soon," Lyn says.

Hoping for those federal dollars is all Lyn holds onto right now. Her parents are not willing to co-sign, and she has no established credit history.

"Cause we're kids. We don't have anything like that," Lyn says.

The pre-med student is just one example of the Alaska tuition turmoil the world's financial melt down has created.

To contact the Newsroom, call 907-274-1111.