Massachusetts college students have options after MEFA implodes

[0:00]" This is Anthony -- in the double ABC newsroom thousands of families are scrambling to find student loans this fool. Now the Massachusetts educational financing authority has announced its Liggett has dried up. The first on its long history mean office says it has not been able to procure underwriting for student loan program. I spoke with a senior education editor at US news and world report Kim Clarke. Kim tell me. As as a reporter who is seen this sort of a thing unfolding with them many agencies. Is discontinuing that these agencies really are finding such a difficult time. In the money markets that they cannot provide the services that many people depend on the four."

[1:14]" So it's that's the smaller non profits to the non profits provide a servers that cannot be found elsewhere or. To these students and families have to just look Carter."

[1:59]" So who is emerging in this field to fill in the gap."

[2:03]" some of the bigger. Bigger lenders discover -- operative tonight deal in cities that they are telling me choruses. The single biggest lender. Secondly I would go directly to the federal government like look at the middleman. More and more school they're just saying you know what we're not going to go through -- which is going to take some money directly from the federal government. And that they're perfectly fine way to borrow. Of course that means that there is no competition and the whole idea of the competition is that it would drive down prices straits. But it's great for taxpayers because they don't have to pay -- subsidies to. Italian mayor any of these middlemen and so. You know we can always borrow directly from the federal government you're you're going to get that Stafford -- you're gonna get your person you're gonna get the plans to. It may not be from you know because -- it'll be from somebody you know I have to worry about the federal. Private alternative he made it."

[2:55]" Is this difficulty with me foot and other non profits. Something that we will see past or is -- something that they need to face in the years."

[3:04]" Yeah that's active 64 billion dollar question everybody's wondering what is happening to the financial markets is funding minute comeback goes as a permanent change. And I want to -- it's not just nonprofit tournament was the smaller lenders in America don't have. In -- taking got a lot treated pretty much you know -- to begin talks everybody listened to right. But need to go to a treatment which is small clear they really can't force people Belinda went to them. So it's really these smaller islanders and that's wasting a lot of smaller companies for profit companies also -- them that this. So. Everybody's waiting to see whether or not this is really can be cured and the federal government recently taken actions to try to improve. The market by promising to provide some funding apparently it hasn't acted quickly enough in time for this fall. Lending season according to meet and text the taxes agency that. I think that who. I was just looking happening it if somebody wanted to go use to the unit owners to want -- to shop around for example. Discover enough for me perfectly finally on the -- the and so you're going to be able to find islander."

[4:14]" Excellent Kim thank you so much for the talent your computer -- always okay."