The Boston Globe is reporting today that 40,000 Massachusetts College students will not be able to take out loans for their college educations this year--that includes people who were already in College and had previously received loans who are just now being notified that they will not be funded for this coming year.
The Massachusetts Educational Financing Authority yesterday said it will not be able to provide student loans this fall for the first time in its 26-year history, leaving more than 40,000 families without an important source of tuition funds just weeks before college classes begin.
The nonprofit lending authority, which last school year provided $510 million in loans, said it has been unable to secure funding to provide private student loans due to the ongoing turmoil in the nation's credit markets. The agency had already disclosed in April that it would no longer offer federally backed student loans.
This is a death knell for the middle class in this country--plus a huge boost in the number of people looking for work in a tight job market in the fall. By my counting, if the Obama people take note, that is 40,000 potential angry Obama voters plus their parents for a round figure of 120,000 energized, angry, potential democratic voters. Its a clear way of showing how Bush's massive economic malfeasance is actively screwing up the lives of our children and our neighbors. This is a direct consequence of the crash of the housing market, the upheavals in the credit market, and the lax regulatory history of the last eight years. And McCain and his campaign of "shut the fuck up you whiners" have zero plan to deal with it. But this is something that reaches right down into the heart of every American family with children--no loans means no college means no white collar jobs for their kids.