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College students are not the only one looking for ways to provide for college. The biggest law school loan provider is going out of business. For the past 25 years this loan provider has been the leading agency in giving money to law students so they could fulfill their dreams. The staff is being severely affected along with the workers of Access Group Inc.
All of these changes are due to a new law passed by the government over this past school year. The lending agency has to stop lending to new students and has been “kicked out†of the federal student loan program.
“We are out of the lending business,” said Access Group President and Chief Executive Officer Christopher Chapman. The only exception, he said, is that the company will disburse loans for one final semester to a small group of international students. “We’ve been legislated out of the federal loan program.”
Everyone at the loan center is more shocked then anything because no one was expecting this big change. The group would be shed from a large staff of about 260 down to a small staff of about 40. There is no reason to maintain a large staff when the business is no longer there. The law school sent a letter to Access Group explaining their decision and how the school would provide loans to new law students.
Access Group no longer has the ability to create new loans for law students and cannot afford to keep a large staff on board. The company does want to note that current borrowers should not panic because repayment options will remain the same. However, the past borrowers of this company should note that “where they send their payments will change.â€Â Students and staff should expect these changes to occur in the next couple of months.
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“The company was devised as a way to ensure that law students had access to lower-priced loans. In its early days, it provided between 75 percent and 80 percent of law student loans. That percentage fell over time, and the company eventually was spun off from the council. In recent years, Access Group was lending as much as $850 million annually to 25,000 to 30,000 law students.â€
This company will be greatly missed by many law students. This was a cheaper loan option for those who chose to go through with law school. The US Department of Education is now the major provider of loans on a federal level. Access Group is not the only company affected by these changes.
Graduate students should also note that they no longer have access to subsidized Stafford loans but they are instead unsubsidized. This means that students will pay a larger amount of interest while they attend school.
“Should federal policy toward student loans shift, the company would be in a good position to once again provide loans.†Chapman said. Access Group can only hope for the best with this entire situation.
