Students may look elsewhere for loans

University of North Alabama - Students at the University of North Alabama who received their loans from Edamerica could be seeking money elsewhere if the lender doesn't come through with the funds for borrowers by Sept. 15, school officials say.

As the fall semester began, Edamerica, based in Knoxville, Tenn., had been notifying students and colleges of its intention to delay releasing funds for college loans as it awaits money from the federal government.

Ben Baker, director of student financial services at UNA, estimates that 400 university students have been affected by the delay.

"Edamerica is our second largest student loan lender behind Regions Bank," he said. "I've no doubt the money will come, but we've already been put off three times."

Edamerica Chief Executive Officer Tony Hollin said Aug. 18 that his organization, the country's eighth largest lender, will make good on its loan promises not just to UNA students but to those at college campuses across the country.

"We're making good on our word to 3,200 schools and 200,000 students and families who are depending on Edamerica to go to school this semester," Hollin said.

Because of the delays, Edamerica's financial solvency has been called into question, leading some to wonder if the lender has fallen prey to the national credit crisis. For students, the delays have caused a crisis as well.

Jacob Montgomery, a freshman from Sommerville, said the situation has meant his tuition has gone unpaid.

"My parents are trying to keep me informed about what I need to do," he said. "But I've gotten a letter from the university that said my schedule would be dropped if my tuition isn't paid. This isn't my fault, but it's not good publicity for the university. There are a lot of other good schools out there."

Baker said UNA will not void a student's schedule as a result of the situation, but he added that other payment arrangements would need to be made quickly.

"We can't recommend or suggest a lender to a student, but we will provide them a list and encourage them to follow through with the process expeditiously," he said. "This has nothing to do with what a student or the university has done wrong."

Michelle Rupe Eubanks can be reached at 740-5745 or michelle.eubanks@TimesDaily.com.