University of Arkansas Students Face Loan Changes

FAYETTEVILLE, Ark. – University of Arkansas students will not be facing a “student loan crisis” when they prepare to enroll for the fall semester. They will, however, have to deal with additional paperwork, ideally before school starts in August.

The university’s Office of Financial Aid is in the process of sending letters and e-mail to almost 3,000 students, to alert them to changes in the ways their loans will be processed.

“The good news is the money for student loans is out there,” said Kattie Wing, director of financial aid. “The bad news is that 20 lenders that worked with our students are now out of the student loan business. This means students will have to pick new lenders and sign new promissory notes before their loans can go through. It’s primarily a matter of paperwork, but it needs to be taken care of before students start fall enrollment.Before August would be best.”

Wing pointed out that the situation is not unique to the University of Arkansas: It affects all colleges and universities in the state . The office of financial aid is trying to get out in front of the problem by notifying students and urging them to act in the coming month. In addition to the letters and e-mail, the office is putting information about the student loan situation into each student’s individual online ISIS account.

Financial aid counselors are also available to help any student understand his or her specific situation, and explain what action needs to be taken.

“The start of an enrollment period is always very busy for everyone,” said Wing. “If students also have to deal with unexpected loan issues it could be very frustrating. We’re hoping to reach the students early, to avoid those problems.”