Families Find Student Loans Not Making Ends Meet!

DES MOINES, Iowa -- As families continue to deal with rising costs at many colleges, some said that they’re finding student loans harder to come by.

Iowa Student Loan CEO Steve McCullough said that many middle-class families are paying higher interest rates on those loans or even finding out that they don’t qualify for them.

“There's actually a scarcity of funds to make loans, and we've never encountered that before,” McCullough said. “There's not a scarcity for the government guaranteed student loans and that's the funds used most to fund college these days for people who have to borrow.”

But those loans only go so far. A freshman entering college can only borrow a maximum of $5,500 at fixed interest rates of 6 percent. The problem is that most families need more than that and there are few options to be had. McCullough said private loans should be a last resort.

Source: http://www.kcci.com/money/17094809/detail.html